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Public Sector and Governance

Structured dialogue, value chain and competitiveness: A journey through implementation, from Copenhagen to Kabul

Steve Utterwulghe's picture



Afghanistan. Photo by Steve Utterwulghe.

This latest blog post should start with a mea culpa. Indeed, my 2015 work plan for public-private dialogue (PPD) did start in Dushanbe, Tajikistan, not Copenhagen. However, who can swear that he never tweaked a title a tiny bit to make it catchier?
 
While Dushanbe hosted the very productive First Regional PPD Forum in the “stans,” the 8th Global PPD Workshop took place in March in the Danish capital. There, “more than 300 representatives from governments, private enterprises, PPD coordination units, investors’ councils, competitiveness partnerships, civil society, business organizations, and various development partners participated in the event. They represented 54 countries and a total of 40 PPD initiatives who joined the event to share their experiences and discuss lessons learned.”
 
High-powered individuals kick-started the Copenhagen event, including HRH Crown Princess Mary of Denmark, who reiterated that, to make a difference in the world, “it will take partnerships across countries, governments, and between public and private sectors.”
 
Once the keynote speeches had been delivered, the real work began among the delegates and with the PPD experts. I jumped from impromptu coffee break to coffee break and strategized with the Côte d’Ivoire delegation on how to prepare for the National Day of Partnership/Dialogue in Abidjan; discussed ways to better involve the private sector in Morocco; debriefed with the Guinea Minister of Industry, SMEs and Private Sector Promotion on how the PPD structure that we helped put in place is strengthening the local value chain for extractive industries (see below); and moderated an engaging session on public-private dialogue in fragile states and conflict-affected countries (FCS), which provided great insights as I prepared to fly out on PPD missions to Somalia and Afghanistan.
 
Aside from the buzz of international gatherings, what really matters for the delegates, from both governments and the private sector, is to get inspired and bring back home ideas that can be adapted locally and successfully implemented. Public-private dialogue is an art defined by some fundamental core principles that can be adjusted according to specific needs and environments.
 
As a reminder, PPD refers to the structured interaction between the public and private sectors to promote the right conditions for private sector development. Its ultimate function is to contribute to a prosperous economy by expanding market opportunities and enabling private initiative. This is also very much the mission of the new World Bank Group Global Practice on Trade & Competitiveness (T&C). Its Senior Director, Anabel Gonzales, wrote in one of her blog posts on Trade and Development in Africa that fostering competitiveness and strengthening supply chains is a key to development and an integral part of T&C’s offering.
 
As I reflected on the links between structured multi-stakeholder dialogue, competitiveness and supply chains, I remembered a Harvard Business Review article written by Michael Porter and Mark Kramer, entitled Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility.
 
What particularly caught my attention at the time was the theory on interdependence between companies and society that the Harvard professors put forward. They argued that this interdependence takes two forms: the social impact that a company’s activities has on society, or “inside-out linkages,” and the social influences on the company’s competitiveness, or “outside-in linkages.”
 

Pushing the frontier of e-government procurement in Africa with the open contracting standard

Lindsey Marchessault's picture

Public procurement is a linchpin for good governance and effective public service delivery, both of which are critical to the sustainable development of Africa. In many countries throughout the region, strengthening procurement to address weaknesses in public sector governance has become a priority. 
 

Rousseau isn’t the first, nor last, to negotiate a ‘social contract’

Mehrunisa Qayyum's picture
Webcast Replay



“50% of Arab world citizens are dissatisfied with public services in their area,” according to a World Bank survey — which prompted not one, but two sessions at the World Bank Group-International Monetary Fund Spring Meetings. So it was no coincidence that the meme #BreaktheCycle emerged in another Middle East and North Africa (MENA) panel, “Creating Jobs and Improving Services: A New Social Contract in the Arab World,” which also revisited the theme of the social contract in both oil-importing and exporting countries.

Innovation and collaboration for rapid results in public procurement

Sarah Lavin's picture


The World Bank’s Governance Global Practice (GGP) is integrating its approach to address technical and political constraints to effective public procurement in Cameroon.
 
In efforts to boost efficiency and integrity in public spending, the Government of Cameroon created the Ministry of Public Procurement (MINMAP), the first of its kind in the world, to take responsibility for providing oversight to public contract procurement and management. It is also in charge of executing high value contracts on behalf of all sector ministries and designing public procurement policies and capacity development strategies in partnership with the pre-existing public procurement regulatory body (ARMP).

Financial risk, resilience and realism: ‘New Economic Thinking,’ amid ominous tremors from the eurozone

Christopher Colford's picture



How safe and how stable is today’s international financial system? Eight years since the global bond markets started quaking – and almost seven years since the Lehman Brothers debacle triggered a worldwide meltdown – is the financial system resilient enough to recover from sudden shocks?

These are not just rhetorical questions, but urgent ones. Amid the ominous recent tremors within the European Union – with the intensifying risk that insolvent Greece could soon “crash out” of the eurozone if it fails to extract more bailout money from its exasperated rescuers – the global financial system may be about to get another real-life lesson in riding out traumatic turbulence.

So mark your calendars for this Wednesday, May 6, when a top-level conference with some of the world’s leading financial luminaries will be livestreamed online at (click here) this website from 9 a.m. to about 5 p.m. Many of the world’s top regulators, policymakers and scholars – brought together by the Institute for New Economic Thinking – will gather at the International Monetary Fund for a day-long exploration of “Finance and Society.”

A sense of déjà vu might seem to surround the conference agenda, especially for World Bank and IMF colleagues who recall the nonstop financial anxiety that consumed the Spring Meetings just a few weeks ago. A similar economic dread reportedly pervaded last week’s Milken Global Economic Conference in Los Angeles.

Yet the INET conference may be poised to offer a somewhat different perspective. The Spring Meetings featured the familiar lineup of business-suited, grim-and-greying Finance Ministers – mostly male, mostly middle-aged, mostly mainstream moderates – but the group of experts at the “Finance and Society” conference will reflect a welcome new dose of diversity. Every major speaker on the agenda is a woman.

The economists at the pinnacle of the world’s most powerful financial institutions – Christine Lagarde of the IMF and Janet Yellen of the U.S. Federal Reserve System – will keynote the conference, and the proceedings will include such influential financial supervisors as Sarah Booth Raskin of the U.S. Treasury and Brooksley Born and Sharon Bowen of the U.S. Commodity Futures Trading Commission. There’ll also be a pre-conference speech by the woman who has suddenly galvanized the Washington economic debate: No, not Hillary Clinton, but Senator Elizabeth Warren.

The new global roster of financial leaders – in this conference's case, all of them women – illustrates how economic policymaking is now, at last, drawing on the skills of an ever-wider-ranging talent pool. The economic expertise featured this week is bound to mark a positive step forward, considering the ruinous impact of the recent mismanagement by middle-aged mainstream men. (Sorry, guys, but can you really blame people for noticing that the pale-stale-and-male crowd allowed the world to drift toward the Crash of 2008?)

This week’s conference agenda is admirably forthright about the challenge: “Complexity, special interest, and weak systems of governance and accountability continue to interfere with the ability of the financial system to serve society's needs.” With Lagarde and Yellen setting the tone – and with Warren adding an injection of populist vigor – this week’s INET conference seems likely to offer some imaginative insights that go beyond the familiar Spring Meetings formula.

If ever there were a time when an INET-style dose of “new economic thinking” might be needed, it’s now. Growth is sluggish and sometimes even stagnant in many developed nations, amid what Largarde calls “the new mediocre.” Markets are fragile and currencies are volatile in many developing countries. A commodity-price slump may drain the coffers of many resource-rich but undiversified economies. As mournful pundits have been lamenting seemingly ad infinitum and sans frontières, the global economy is suffering from a prolonged hangover after its pre-2008 binge of irrational exuberance.

As if the worries about “secular stagnation” were not enough, there’s also the tragedy of Greece, where an economic calamity has unfolded like a slow-motion car wreck as financial markets breathlessly await the all-too-predictable collision. Regular readers of this blog will surely have noted that fears of Greece’s potential crashout from the eurozone have been nearing a crescendo – and the possible default-to-the-drachma drama may soon reach its catharsis.

In Edo State good governance doesn’t square with delivery

Katherine Anne Bain's picture


Photo credit: Jbdodane

When Governor Adams Oshiomhole took office in Edo State, Nigeria, in November 2008, it was on the back of a protracted battle to retrieve his mandate through the electoral courts and through fractious politicking by labour and civil society groups.

After a scale of violence in the summer of 2009, across the oil-rich Niger Delta region, oilfields shut down and 200,000 people were displaced.

The public expected that Oshiomhole would deliver on his promise of “a citizens' government," but “quick wins” would be a challenge. After years of neglect, inaction and patronage politics, the state’s administration was untrusted, mired in dysfunction, fiscal uncertainty and debt.

By 2012, the governor had returned for a second term with an increased majority in an election widely touted as relatively free and fair. No small part of this success is due to signature efforts in ramping up capital spending, especially around roads and civil infrastructure.

PPPs: Making a real difference in delivering public services in Bangladesh

Syed Afsor H Uddin's picture
Who first introduced Public-Private Partnerships (PPPs)? This is a question that often leads to endless discussions, provides an opportunity for one-upmanship and is an entertaining diversion for practitioners on the margins of international PPP conferences.

During these debates many examples are quoted – the early 20th century oil concessions in the Persian Gulf, the late 19th century cross continental railway in the USA and the İzmir-Aydın railway concession in present-day Turkey, the Rhine river concession granted in 1438[1] and so on.
 
Photo: Rezwan/flickr

As debate on the origin of PPP continues, the modern-day popularity of PPPs is more commonly acknowledged to have emerged from the United Kingdom, following the introduction of Private Finance Initiatives in 1992’s autumn budget statement by RH Norman Lamont, then Chancellor under John Major’s Conservative government.[2]

In the intervening years, many developed and developing nations have started PPP programs of their own. Indeed, the growth of PPPs in developing countries is nothing short of phenomenal, with the mechanism being used in more than 134 developing countries and contributing to 15–20 percent of total infrastructure investment[3].

This is also true of Bangladesh. In 2009, the Government of Bangladesh announced the introduction of a revised PPP program[4] in the 2009/10 Budget Session, and then introduced a new PPP policy in August 2010 (PPP Policy 2010[5]).

Welcome to the PPP Realities Blog

Laurence Carter's picture
We’re excited to launch this new dedicated blog platform around public-private partnerships (PPP). We envision it as a space for sharing experiences, disseminating knowledge and generating discussion. We hope that this space will be enriched by perspectives from PPP practitioners in governments, from investors, financiers, advisors, associations and so forth. 
 
Why? There is a danger that public-private partnerships are being oversold.  
 
Public-private partnerships
can help secure investments,
expertise and other resources
for infrastructure that delivers
essential services like
clean water.
A “disappointment gap” currently exists between high expectations and the sober reality of successfully concluded partnerships. Too much attention is often paid to financing, and not enough to the less glamorous hard work of preparation. There isn’t enough information being collected about performance. And there are different interpretations about what PPP means, exactly.
 
Right now, the PPP discussion is rhetoric-rich and data-poor. It is expectation-heavy, and cold-light-of-day reality is tougher. That’s a shame, because, when prepared carefully, with full assessment of the different options, and the fiscal/economic/environmental/social implications, PPPs can be a useful tool to help governments improve the quality and reach of their physical and social infrastructure services. 
 
We’re working alongside the world’s other multilateral development banks to prepare a joint website for PPPs, which will be called the PPP Lab. That upcoming website – launching in June – will contain quantitative and qualitative information about PPPs and private infrastructure, including the Private Participation in Infrastructure Database, the Public-Private Partnerships in Infrastructure Resource Center, Infrascope reports, and the PPP Reference Guide.

In addition, our new online course on PPPs will introduce real-world cases to an audience that doesn’t attend PPP conferences or read development banks’ annual reports.
 
There are plentiful examples that illustrate the realities, challenges and opportunities that PPPs offer. With your help, we intend to share and explore many of them on this blog. We invite you to read, share and engage with us on these topics and follow us on Twitter at @WBG_PPP.

Rebuilding trust in governments through Open Contracting

Luis Vélez Pretelt's picture


Building trust between citizens and governments is crucial to successfully address, in a collaborative and engaged manner, many of the issues that affect the everyday lives of citizens, like corruption, government inefficiency and lack of service delivery.

Recent data, however, has shown that trust between citizens and governments ranks low.

In fact the 2015 Edelman Trust Barometer stated that the number of “truster countries” are at an all-time low, reflecting a general decline of people’s trust in institutions of governments, NGOs, business and media.

Exploring Digital India's transformative plans

Rajendra Kumar's picture
In August 2014, the Government of India approved Digital India, an ambitious national program aimed at transforming India into a knowledge economy and making government services more efficient and available to all citizens electronically. Over the next three years, the program envisions a national optical fiber network will connect thousands of India’s most distant gram panchayats — village-level governments — with a total population of more than 800 million.

This infrastructure will support government reform and change the way services are delivered. It is also expected that the program will help create thousands of new IT jobs, give a boost to the domestic manufacturing of electronics and, as a spin-off effect, lead to emergence of new services and flourishing e-commerce.
 
India’s Department of Electronics and Information Technology (DeitY) is the agency that help develop and now is driving the implementation of this transformative agenda. We asked Dr. Rajendra Kumar, Joint Secretary for e-Government, to tell us more about Digital India, the challenges this program is meant to address and the solutions that are envisaged. Read Dr. Kumar’s selected responses below, and click here to download the full version of the interview.

Digital India, the ambitious initiative of the Indian Government, aims to bridge digital divide and bring high-speed Internet and government services to the rural and underprivileged parts of the country by 2019. What are the key development challenges that Digital India is addressing and why was investment in ICTs chosen as the main solution?

India is sitting on the cusp of a big information technology (IT) revolution. We have to leverage our massive Indian talent and information and communication technologies (ICTs) as growth engines for a better India tomorrow. This is embodied in the following statement: IT (Indian Talent) + IT (Information Technology) = IT (India Tomorrow).

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