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Public Sector and Governance

Performance-related pay in the public sector: Experimentation with humility is an appropriate stance, given the state of the evidence

Nick Manning's picture

Pay Flexibility book coverA new publication on Pay Flexibility and Government Performance[1] finds that, in this area as in so many aspects of public sector management, practitioners are hampered by a lack of high quality evidence, particularly for PRP in core administrative public sector jobs.  The publication draws on a two sets of data: a review of the literature on Performance-Related Pay in the Public Sector[2] which disaggregates the available evidence by the different public sector contexts, the different types of public sector jobs, the quality of the empirical study, and the economic context; and case studies of PRP in emerging market and OECD countries, which included large perception surveys of government officials.

A related article in the World Bank Research Observer notes that this has not limited the remarkable certainty which opponents and proponents of PRP adopt concerning recommendations for reform.  Opponents march behind populist banners such as that provided by Pink[3], appealing to the idea that monetary and other extrinsic incentives are both counterproductive (because they frequently undermine intrinsic incentives) and unnecessary (because intrinsic incentives can be harnessed and used to maximize individual productivity).

Transit-oriented development — What does it take to get it right?

Chyi-Yun Huang's picture
Follow the authors on Twitter: @chyiyunhuang and @shomik_raj
 
A recent trip to Addis Ababa really brought the imperatives of transit-oriented development as a complement to mass transit investments home to us. As a strategic response to rapid urbanization and growing motorization rates, Addis is one of several African cities currently developing public mass transit systems such as light rail and bus-rapid transit. Similar initiatives are budding in Dar es Salaam, Nairobi, and other cities in South Africa.

It is well known that transit-oriented development, or ToD, is a high-value complement to mass transit development. Compact, mixed-use, high density development around key mass transit stations can have the dual benefits of creating a ridership base that enhances the economic and financial viability of the mass transit investment and compounding the accessibility benefits a mass transit system can bring to a city’s residents. This is not to mention the intrinsic value in creating vibrant social gathering places for communities at strategic locations.

How can we measure state capacity? Do you start upstream or downstream?

Nick Manning's picture

About a year ago, Frank Fukuyama released an article entitled “What is governance?” in the Governance journal that became an “instant classic” in the field. Within a month it had elicited over 15 responses from prominent scholars on the Governance blog, not to mention commentary posted elsewhere—including this blog. It already has over 40 google citations, including articles in Spanish, Italian and Portuguese. And a month ago, Governance journal published two more commentaries on Fukuyama’s original article (by Robert Rotberg and Craig Boardman), reinvigorating the debate.

World Bank Helps With Flood Recovery Efforts in Serbia

Laura Tuck's picture

Laura Tuck, Vice President for the Europe and Central Asia region for the World Bank, discusses the World Bank's role in assisting Serbia with recovery and reconstruction following recent floods, and other economic reforms in the country.

Albania - On the Path Toward Economic Growth and Development

Laura Tuck's picture

Laura Tuck, Vice President for the Europe and Central Asia region of the World Bank, discusses her recent trip to Albania, during which she had broad ranging discussions with the government and other partners on the country's growth and development.

Making Digital Government a Reality: Join a Global Webinar for Leaders of Government Transformation

Oleg Petrov's picture
What is the future of digital government? A short answer: it’s constantly evolving based on factors including policy priorities, technologies and citizen demands. But there’s no question that digital government is a considerable driving force behind economic growth, job creation and societal transformation.

On June 5, 2014, the World Bank will host a Global Webinar on the Future of Digital Government from 9:00 a.m. to 10:30 a.m. EDT. You can join us by signing up here. You can also follow the webinar through the World Bank ICT Twitter page, using the hashtag #digigov.

Can political stability hurt economic growth?

Zahid Hussain's picture

Mumbai traffic, India. Simone D. McCourtie / World Bank
The standard definition of political instability is the propensity of a government collapse either because of conflicts or rampant competition between various political parties. Also, the occurrence of a government change increases the likelihood of subsequent changes. Political instability tends to be persistent.
 
Economic growth and political stability are deeply interconnected. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. On the other hand, poor economic performance may lead to government collapse and political unrest. However, political stability can be achieved through oppression or through having a political party in place that does not have to compete to be re-elected. In these cases, political stability is a double edged sword. While the peaceful environment that political stability may offer is a desideratum, it could easily become a breeding ground for cronyism with impunity. Such is the dilemma that many countries with a fragile political order have to face.  
 
Political stability is by no means the norm in human history. Democratic regimes, like all political regimes, are fragile. Irrespective of political regimes, if a country does not need to worry about conflicts and radical changes of regimes, the people can concentrate on working, saving, and investing. The recent empirical literature on corruption has identified a long list of variables that correlate significantly with corruption. Among the factors found to reduce corruption are decades-long tradition of democracy and political stability. In today’s world, however, there are many countries that combine one of these two robust determinants of corruption with the opposite of the other: politically stable autocracies or newly formed and unstable democracies.

Some see political stability as a condition that not only precludes any form of change, but also demoralizes the public.  Innovation and ingenuity take a backseat. Many seek change in all sectors of life--politics, business, culture--in order to have a brighter future through better opportunities. Of course change is always risky. Yet it is necessary. Political stability can take the form of complacency and stagnation that does not allow competition.  The principles of competition do not only apply to business. Competition can be applied in everything – political systems, education, business, innovation, even arts. Political stability in this case refers to the lack of real competition for the governing elite. The ‘politically stable’ system enforces stringent barriers to personal freedoms. Similarly, other freedoms such as freedom of press, freedom of religion, access to the internet, and political dissent are also truncated. This breeds abuse of power and corruption.

Vietnam, for example, is controlled entirely by the ruling party. The economy is one of the most volatile in Asia.  What once was thought of being a promising economy has recently been in distress. Vietnam’s macro economy was relatively stable in the 1997-2006 period, with low inflation, a 7 to 9 percent total output expansion annually and a moderate level of trade deficit. But Vietnam could not weather the adverse impact from the 1997-98 Asian financial turmoil, which partly curbed the FDI flow into its economy. Starting in late 2006, both public and private sector firms began to experience structural problems, rising inefficiency, and waste of resources. The daunting problem of inflation recurred, peaking at an annualized 23 percent level for that year.

What we can learn from domain name liberalization in Turkey and Tunisia

Michel Rogy's picture
Also available in: Français | Türkçe

 

How can we best promote the use of Internet by private companies – particularly small and medium-sized enterprises (SMEs) – in Africa? This question is of growing significance on a continent where most of the population is under 20 years of age and – compared to the previous generation – increasingly accessing information through digital channels[1] as a result of the rapid expansion of mobile broadband services.

This question is also crucial in terms of growth and competitiveness in the context of the growing economic globalization, where customers and business partners use information and communication technologies in a much more intensive manner.

Corruption, Politics and Public Service Reform in the Digital Age

Tina George Karippacheril's picture

//jenniferbussell.com/research/Last week, we invited Jennifer Bussell from UC Berkeley to present her fascinating study on corruption, politics and public service reforms in the digital age. The study is based in India and draws on a wealth of qualitative and quantitative data collected in 2009 from 20 subnational states, investigating how pre-existing institutional conditions influence e-Governance reforms.
 
Public service reforms in the digital age constitute a new era of relations between the citizen and the state. However, scholars have argued that much of the discourse on e-Government has been normative, with fairly optimistic predictions, and wanting deeper moorings in public management theory (Coursey & Norris, 2008; Heeks & Bailur, 2007; Yildiz, 2007).

Thinking politically about the role of MSIs in Governance

Brendan Halloran's picture

The recent rapid expansion of multi-stakeholders initiatives (MSI) promoting improved governance raises critical questions about the role of these mechanisms in addressing problems of government transparency, responsiveness, and accountability, specifically whether and how they generate on-the-ground impact.

HOW DO WE THINK MSIs CONTRIBUTE TO CHANGE?  MSIs, like other efforts to promote change, are built around a theory of change (TOC) about how they will contribute to the achievement of their goals.  These proposed causal pathways may be explicitly stated or implicit.  How do MSIs in the governance sphere articulate their role in contributing to change?  Do they base their theories of change on questionable assumptions, or lack a change hypothesis altogether?  TOCs also reflect a specific understanding of the challenge they seek to address.  It should not be surprising that a technical framing of governance problems would lead to a technocratic approach to a solution.  For example, the framing in OGP of ‘open’ government, with little explicit emphasis on democratic governance, may contribute to an emphasis on open data, e-government, and other technical aspects of governance, which are unlikely to address the core political dynamics that underlie governance deficits.


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