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Public Sector and Governance

Using country procurement systems in China and Vietnam to improve efficiency, transparency and competition

Ba Liu Nguyen's picture
Chongqing, China. Photo: Li Wenyong / World Bank

Procurement is an essential aspect of World Bank operations and international development projects worldwide. The World Bank’s policy on procurement encourages the use of country systems in procurement implementation process while ensuring the consistency with the Bank’s regulations . 

Making procurement information publicly available promotes openness and transparency and creates a level playing field for bidders. This, in turn, fosters competition and potentially decreases corruption risks. 

With this in mind, World Bank teams in East Asia and the Pacific successfully collaborated with government procurement agencies to increase and improve the publication of procurement information and to pilot e-procurement portals for Bank-funded operations. 

The following story shares our experiences and successes in both China and Vietnam. 

The staircase of relationships – and P2P partnerships

Malcolm Morley's picture

In my previous two blogs: Developing Public to Public Partnerships (P2Ps) that Improve Infrastructure’s Social and Economic Value and 10 tips for Implementing a Public to Public Partnership (P2P), I sought to highlight the importance of organizations working together within the public sector if they want to maximize the value from Public Private Partnerships (PPPs). Regrettably, it’s too frequently the case that the potential of the public sector to maximize the value it achieves from PPPs remains unfulfilled because of relationships within the public sector preventing or inhibiting organizations working effectively together.
 
If public sector organizations can’t develop effective partnership working among themselves, how can they maximize value from partnerships with the private sector?

The false debate: choosing between promoting FDI and domestic investment

Cecile Fruman's picture

Should we focus our efforts on foreign investment or domestic investment?” Policymakers in developing economies often ask this question when the World Bank Group advises them on how to improve their countries’ investment climate or investment promotion efforts. Our answer is: They do not need to choose one over the other. In order to grow and diversify, an economy needs both domestic investment and foreign direct investment (FDI).  The two forms of private investments can be strong complements.
 
Recognizing the Potential Benefits of FDI
 
The economic benefits of FDI were identified a long time ago. A Harvard Business School paper published 30 years ago summarized the benefits of FDI based on an extensive review of economic literature (Wint, 1986). In short: Benefits traditionally attributed to FDI include job creation, transfer of technology and know-how (including modern managerial and business practices), access to international markets, and access to international financing.

Granted, some of these benefits also occur thanks to domestic investment. For instance, domestic investments create jobs in a host economy – usually many more than FDI. However: What FDI does well is enhance or maximize some of the benefits already generated by domestic investments in a developing economy.
 
To stay with the example of job creation: Foreign firms might not create as many jobs as the domestic private sector, but they often create better-paid jobs that require higher skills. That helps elevate the skills level in host economies. The same can be said for other FDI benefits. For instance, more advanced technologies and managerial or marketing practices can be introduced in a developing economy through foreign investment, and at a much faster rate than would be the case if only domestic investment were allowed. Moreover, through partnerships with foreign investors who have existing distribution channels and commercial arrangements around the world, developing countries’ firms can benefit from increased market access.



In China, millions of rural residents each year migrate to cities to seek work. As they find jobs in modernizing industries, they gain the skills they need to earn higher incomes. In this photo, an employe in Chongqing is learning higher-level computer skills. Photo: Li Wenyong / The World Bank
 

All’s fair in love and (the global tax) wars?

Jim Brumby's picture




The mishmash of overlapping and incoherent national tax policies and systems, which together comprise the global tax architecture, used to be a niche topic relegated to the fringes of global policy debates and the domain of a small number of technical experts. But the leak of the “Panama Papers” in April thrust these issues into the spotlight anew.

This added fuel to the fire that was started by the 2012 Amazon and Google cases and subsequent initial high-profile leaks that first brought international tax policy under public and legislative scrutiny. The technicalities of issues such as transfer pricing, offshore financial centers, aggressive tax planning and tax minimization, and illicit financial flows involving public officials have gained the attention of the media and taxpayers around the world.

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.


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