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Public Sector and Governance

Imminent! Transformation of the World Bank’s Procurement Framework

Robert Hunja's picture
World Bank. Photo © Dominic Chavez/World Bank

In keeping with recent global trends in the procurement arena, the World Bank is transforming and modernizing its procurement framework. 

In the private sector, companies have long viewed maximizing of supply chains as key to healthier bottom lines.  In the public sector, many governments have been moving from overly rule-based procurement systems to systems that focus on performance and achievement of development goals. 

Government procurement – a path to SME growth?

Simon Bell's picture
A tile factory in Ghana. Photo: © Arne Hoel/The World Bank


In many countries Government is the biggest procurer of goods and services, which makes them an attractive client for small and medium scale enterprises (SMEs) seeking to get a leg up in business.

Recognizing the important role that the public sector plays as a purchaser of goods and services, as well as the critical role SMEs have for the economy, Governments frequently use Public Procurement to incentivize, support and otherwise sustain local SMEs.

Also, as in many of our client countries, where the vast majority of SMEs are informal, the lure of a significant Government contract can serve as a strong motivator to register and formalize – bringing these companies in from the shadows.

But there is also a significant downside in many countries. Cash-strapped governments frequently don't pay their bills on time and, in some countries, payment delays of 12 months or even two years are not uncommon. Such delays can seriously compromise the position of a small scale enterprise which – with limited access to formal bank financing – relies critically on cash flow from its clients to sustain its business. A six month delay in receiving payment on a contract can easily put a small firm out of business.

Three must-haves to improve services for the bottom 40 percent

Hana Brixi's picture
Community at discussion of water supply and sanitation. Kaski, Nepal.
Photo: © Simone D. McCourtie / World Bank

Improving services for the bottom 40 percent of the population requires more than policy reforms and capacity building. The Inclusive Growth conference suggested that Bank operations may need to further encourage transparency of state performance, help internalize citizen feedback in the public sector, and empower local leaders to experiment and inspire others.
 
What will it take to engage citizens as a force toward improving services for the bottom 40 percent? 

In the session, “How to Make Services Work for the Bottom 40 Percent ”, Robin Burgess, Stuti Khemani, Jakob Svensson, drawing on their recent research, showed that quality services and prosperity requires citizen action to incentivize politicians and public servants.

3 reasons why ‘Housing for All’ can happen by 2030

Gloria M. Grandolini's picture


By 2030, almost 60 percent of 8.3 billion people will live in cities, according to UN estimates.

Almost 1400 of the world’s cities will have half a million or more inhabitants.

Cities can connect people with opportunities, incubate innovation and foster growth, but they require urban planning, infrastructure, transport and housing.

Change in (flight) plan: Just three months to fix Vanuatu’s runway

Christopher J. De Serio's picture
Port Vila, Vanuatu. Photo credit: Phillip Capper


Overjoyed at the emergency rehabilitation of Bauerfield International Airport, Vanuatu’s gateway for travelers, Linda Kalpoi, the general manager of the Vauatu Tourism Office, was in buoyant spirits as she attended the May 6 ceremony announcing the repair’s completion.
 
Vanuatu yearned for good news. Still recovering from Cyclone Pam’s devastation in March 2015, it was hit by political turmoil after the unprecedented conviction of 14 members of Parliament in October 2015. Then, on January 22, 2016 – the same day Ni-Vanuatu citizens were casting ballots for a snap election – Air New Zealand suspended flights due to safety concerns over the runway condition. Qantas and Virgin Australia followed suit a week later. With only a few airlines still operating, the country lost a sizeable chunk of international tourists. 
 
Airport planning in Vanuatu has long been fraught with differing opinions and priorities. Multiple governments with conflicting visions for developing international air transport, as well frequent changes to the staff and leadership of Airports Vanuatu Ltd (AVL), had left the runway in critical need of repair.

'Winning the Tax Wars': Mobilizing Public Revenue, Preventing Tax Evasion

Christopher Colford's picture
"Winning The Tax Wars" conference


"When something such as the Panama Papers [disclosures on global tax avoidance] happens, we seem to be surprised. We should not be."
— Vito Tanzi, former leader of international tax policy at the International Monetary Fund; author of "Taxation in an Integrating World" (1995)

"Taxes are what we pay for civilized society," said the famed U.S. Supreme Court Justice Oliver Wendell Holmes Jr. So what does it say about society when it tolerates a skewed tax system that applauds tax avoidance, accommodates tax evasion, mocks the compliance of honest taxpayers and drags its feet on tax cooperation?

Those are some of the philosophical (and pointedly political) questions that are being debated this week at the World Bank, at a conference that has gathered some of the world's foremost authorities on international tax policy along with international advocates of fair and effective taxation.

If you can't make it in-person to the Bank's Preston Auditorium this week, many of the conference sessions are being livestreamed and the video will be archived at live.worldbank.org/winning-the-tax-wars

The livestreamed sessions include a pivotal speech by a determined tax-policy watchdog, former Sen. Carl Levin (D-Michigan) — the former chairman of the U.S. Senate's Permanent Subcommittee on Investigations — whose address on "Reducing Secrecy and Improving Tax Transparency" will be one of the highlights of the forum.

Coming just a week after a global conference in London on tax havens, tax shelters and abusive tax-dodging — a conference that highlighted some wealthy nations' lackadaisical approach to enforcing tax fairness —  this week's Bank conference, "Winning the Tax Wars: Protecting Developing Countries from Global Tax Base Erosion" will propel the fair-taxation momentum generated by the recent Panama Papers disclosures. That leaked data exposed the rampant financial engineering (by high-net-worth individuals and multinational corporations) to avoid or evade taxes.

Why cultural diversity matters to development

Ede Ijjasz-Vasquez's picture
Culture is an essential component of each and every society. It is the fabric that weaves communities together and gives them their unique identity. Acknowledging and factoring in cultural diversity is essential to working efficiently with our client countries and adapting interventions to the local context.
 
Embracing cultural diversity, especially through the preservation of cultural heritage assets, also brings tangible economic benefits. Preserving or repurposing historic landmarks in downtown cores, for instance, can make cities more vibrant, attract new firms, and foster job creation. In addition, the preservation of cultural assets plays a key part in supporting sustainable tourism, a sector that has significant potential for reducing poverty in both urban and rural settings.
 
On this World Day for Cultural Diversity for Dialogue and Development, Ede Ijjasz and Guido Licciardi tell us more about the role of culture and its importance to the World Bank's mission.
 
If you want to learn more about this topic, we invite you to discover our latest Sustainable Communities podcast.

Competition and poverty: How far have we come in understanding the connections?

Sara Nyman's picture


Women in a grain market in Kota, Rajasthan. 

Strengthening competition policy is an under-acknowledged but potentially cost-effective way to boost the incomes of the poor. Greater competition between firms has the potential to boost growth through its impact on productivity, and it is increasingly acknowledged as a driver of welfare in the long term.

Despite that fact, competition reforms are notoriously difficult to implement. One of the reasons is opposition from interested groups that stand to lose out from these reforms in the short term – and a frequent lack of evidence or voice on the side of those who could gain from the direct effects of more competition.
 
What is the evidence on the direct impact of competition on the poorest in society, and what do we still need to learn?

A recent review of the evidence by the World Bank Group (WBG) seeks to answer these questions. The review follows two basic ideas. First: Competition policy has the greatest impact on the poor when it is applied to sectors in which the poor are most engaged as consumers, producers and employees. Second: Competition policy should have a progressive impact on welfare distribution in sectors where less-well-off households are more engaged relative to richer households.

Several sectors stand out as being particularly important here. 
 
  • Food products and non-alcoholic beverages are by far the most important sector for poor consumers in terms of their share of the consumption basket. They also make up a relatively higher proportion of the consumption basket of the least-well-off households. (See Figure 1, below. Source: WBG computations based on household survey data.)
  • The retail sector is also important for consumers as the final segment of the food and beverages value chain. It is also a significant employer of the poor.
  • Services such as transport and telecommunications play an important dynamic role in combatting poverty and reducing inequality. Better informed and more mobile consumers are more able to switch suppliers, thus moderating suppliers' market power. Services are also an important input for entrepreneurs.
  • Other agri-inputs, such as fertilizer and seed, are key for the incomes of small agricultural producers. 

Empowering farming communities to manage biodiversity in Nepal

M. Ann Tutwiler's picture
 Also available in Spanish
Surya and Saraswati Adhikari on their biodiverse farm, Nepal.
Photo credit: Bioversity International/J. Zucker
The Himalayan mountain village of Begnas sits in a valley rich in agricultural biodiversity. Altitudes range from 600 to 1,400 metres above sea level, with the landscape home to a combination of wetlands, forests, rice terraces and grazing areas. There are two freshwater lakes, Lake Rupa and Lake Begnas, which provide irrigation, important habitats for wildlife and support small-scale fish-farming activities.


I recently visited one of Bioversity International’s project sites in Begnas, where I met farming couple, Surya and Saraswati Adhikari. They proudly showed me around their biodiverse farm, pointing out some of the 150 plant species they grow and explaining that each one has a specific use. They showed me the vegetables, rice, gourds and legumes they grow to eat and sell; the trees that provide fruits, fodder and fuel, and the many herbs for medicinal and cultural purposes.


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