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Public Sector and Governance

Making social accountability part of Mongolia’s DNA

Marcela Rozo's picture
Mongolia has made good progress in its economic and political transitions during the last two decades, but this growth has not been fully translated into improved quality of public services, particularly for the poor and vulnerable. Despite the government’s legal and regulatory reforms to improve transparency and citizen participation in the management of public funds, the pace of implementation is still lagging.  

As Mongolia suffers with economic instability due to external and internal circumstances, how can we improve performance of basic public services in a way that works well in the Mongolian context but also brings sustained outcomes?
Local champions for social accountability are building their vision for the project.
© SDC and World Bank Mongolia

Three ways to partner with cities and municipalities to mobilize private capital for infrastructure

Sara Perea Sigrist's picture



When seeking to engage private partners, one thinks of large, high-cost national infrastructure projects. But subnational governments are also effectively partnering with the private sector by leveraging assets, rethinking “infrastructure,” and establishing mechanisms to give long-term security.
 
Some Latin American governments are capitalizing on legislative frameworks for Public-Private Partnerships (PPPs)—in some cases tailoring laws for subnational use, and using experience gained from large-scale national projects.
 
While not always technically PPPs, this private sector capacity can be harnessed to deliver innovative smaller projects, from using drones to deliver medicines to health centers in rural communities in the Dominican Republic to building market stalls in a new Honduran bus terminal to spur the development of small businesses.
 
Here are three ways cities and municipalities can mobilize capital and innovation in infrastructure.
 

From stadiums to gendarmeries: a new generation of public-payment PPPs in France

François Bergere's picture


The Stade Vélodrome in Marseille, France. Photo Credit: Ben Sutherland via Flickr Creative Commons

In June 2016, nearly 2.5 million enthusiastic spectators gathered in France to attend the Euro 2016 soccer tournament.

Those participating in matches in Lille, Bordeaux, Marseille or Nice would have noticed the brand new facilities and bold architectural design, but most probably didn’t realize these stadiums had been either constructed or modernized with financing through the relatively new “Contrat de partenariat” public-private partnership (PPP) scheme.

Toward next-generation performance budgeting

Donald Moynihan's picture
 Photo © Dominic Chavez/World Bank


Performance budgeting (PB) has a deep and enduring appeal. What government would not want to allocate resources in a way that fosters efficiency, effectiveness, transparency, and accountability? However, such aspirations have proven poor predictors of how performance data are actually used.

The potential benefits of identifying and tracking the goals of public spending are undeniable, but have often justified a default adoption of overly complex systems of questionable use. Faith in PB is sustained by a willingness to forget past negative experiences and assume that this time it will be different. Without a significant re-evaluation, PB’s history of disappointment seems likely also to be its future.

Aiming high is Pakistan’s way forward

Kristalina Georgieva's picture

 

The Tarbela dam in Pakistan staddles the Indus River. The earth- and rock-filled structure is almost 500 feet high and 9,000 feet wide
The Tarbela dam in Pakistan staddles the Indus River. The earth- and rock-filled structure is almost 500 feet high and 9,000 feet wide. Credit: World Bank


My visit to Pakistan began last week at the enormous Tarbela dam. Straddling the Indus River, this earth- and rock-filled structure is almost 500 feet high and 9,000 feet wide. It is a monument to Pakistan's scientific and engineering ability. It also illustrates the opportunities and challenges facing Pakistan.

I was last in Pakistan in 2011 and I can see that big changes have happened since then.

The country has worked through three tough years that brought improvements in security and a more stable economy. Much of the economic growth has benefited poor people and Pakistan's levels of inequality compare favourably to many middle-income countries.

 

World Bank Chief Executive Officer Kristalina Georgieva's meeting with Prime Minister Nawaz Sharif
World Bank Chief Executive Officer Kristalina Georgieva's meeting with Pakistan's Prime Minister Nawaz Sharif. Credit:  Pakistan Prime Minister House

Speaking to leaders in government, political parties, civil society, the private sector and various thought leaders, I sensed an optimism that the country had found its footing and is moving up the ladder of development.

This optimism is good news. But optimism needs to be supported by actions. Pakistan can move to a higher level of economic growth that reaches all parts of society, including the most marginalised, and thus fulfilling the dreams of a better life for all.

Three opportunities and challenges for Pakistan

In my discussions with the government in Pakistan we focused on three areas of opportunity and challenge: the first is higher growth and jobs. The government wants annual economic growth of 6 to 7 per cent compared to 4.7 per cent achieved in fiscal year 2016. But this will only happen if investment doubles to 30 per cent of Gross Domestic Product (GDP). Investments in energy, such as Tarbela, to end constant power cuts, as well as improvements in the business environment, so that companies hire more people, will be critical to success. A more favorable environment for private investment would open up opportunities for women, youth, and the underserved.

Resuming PPPs in Sri Lanka – now or never?

Amali Rajapaksa's picture



Sri Lanka has, over the past decade, relied primarily on public funds for most of its infrastructure needs that have come by way of borrowing on concessional and non-concessional terms with limited attempts being made to develop infrastructure with the use of private funds. However, the infrastructure gap continues to widen with the growing limitations in borrowing capacity, and the government is under pressure to deliver infrastructure adhering to practices of good governance and transparency.

The recent budget shed light on several areas where the government could engage the private sector through public-private partnerships (PPPs). Could this bring about accelerated development in infrastructure that the limited amount of public finance alone would not be able to handle?

Three factors that have made Singapore a global logistics hub

Yin Yin Lam's picture
Then vs. now: the Port of Singapore circa 1900 (left) and today (right). Photos: KITLV/Peter Garnhum

When it gained independence in 1965, Singapore was a low-income country with limited natural resources that lacked basic infrastructure, investment and jobs.

A few decades later, the picture couldn’t be more different. Singapore has become one of Asia’s wealthiest nations, due in large part to its emergence as the highest-performing logistics hub in the region (see World Bank Logistics Performance Index).

The numbers speak for themselves. Today, the small city-state is home to the world’s largest transshipment container port, linked to over 600 ports worldwide. Singapore Changi airport is voted the best internationally, and is served by about 6,800 weekly flights to 330 cities. Finally, the island nation’s trade value amounts to 3.5 times its GDP.

Singapore’s achievements did not happen by chance. They result from a combination of forward-looking public policy and extensive private sector engagement. This experience could provide some lessons to any developing country seeking to improve its logistics network. Let us look at three key factors of success.

Getting a global initiative off the ground: What can transport learn from energy?

Nancy Vandycke's picture

In May last year, key stakeholders joined the World Bank Group in calling for global and more concerted action to address the climate impact of transport while ensuring mobility for everyone. More recently, the Secretary-General’s High-Level Advisory Group on Sustainable Transport noted, in its final recommendations to Ban Ki-Moon, emphasized the need for “coalitions or partnership networks” to “strengthen coherence” for scaling up sustainable transport, as well as establishing monitoring and evaluation frameworks. These issues have been raised at Habitat III, COP22 and at the Global Sustainable Transport Conference in Ashgabat.
 
As the global community readies itself to move from commitments to implementation, what can transport learn from similar initiatives in other sectors, such as Sustainable Energy for All (SE4All)?

How to manage revenues from extractives? There’s a book for that!

Rolando Ossowski's picture
 
Offshore oil and rig platform. Photo: © curraheeshutter / Shutterstock.


Countries with large nonrenewable resources can benefit significantly from them, but reliance on revenues from these sources poses major challenges for policy makers. If you are a senior ministry of finance official in a resource-rich country, what are the challenges that you would face and how can you strengthen the fiscal management of your country’s oil and mineral revenues? Consider some of the issues that you would likely encounter:

For many resource abundant countries, large and unpredictable fluctuations in fiscal revenues are a fact of life. Resource revenues are highly volatile and subject to uncertainty. Fiscal policies will need to be framed to support macroeconomic stability and sustainable growth, while sensibly managing fiscal risks. Also, there is a question of how to decouple public spending (which should be relatively stable) from the short-run volatility of resource prices.

Wanted: someone to energize infrastructure projects across the Caribbean

Paul da Rita's picture


 

On a recent trip to the Caribbean, I was in a meeting at the Ministry of Finance of one of the region’s largest economies. The topic under discussion was all too familiar: the difficulty of attracting overseas investment into the country’s public infrastructure projects.

To enliven things, I began thinking aloud about an idea I’d been musing on for a while and was asked to outline my idea. Let me first set the context.


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