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Public Sector and Governance

Resilient Communities: What does it take to curb violence in cities?

Paula Rossiasco's picture

Photo: Make Noise not Art/Flickr
Almost five years ago in a discussion with urban experts from several Latin American and African countries, an important question was asked: how do we curb increasing levels of crime and violence in some of the fastest urbanizing countries in the world?
 
To explore this query, we embarked on a cross-country analysis of cities in West, Central and East Africa, seeking to not only better our understanding of urban fragility, crime, and violence, but also identify critical entry points to curb the challenges we would find. In the report Urban Fragility and Violence in Africa: A Cross-country Analysis, we explored one of the most recently relevant but less explored dimensions of fragility and violence in Africa: urbanization.
 
The world is urbanizing at staggering, unprecedented rates. By 2014, 54% of the world’s population was residing in urban areas. This number is projected to grow to 66% by 2050. Today’s large cities are concentrated in developing countries, with medium-sized African and Asian cities as the fastest growing urban agglomerations. People migrate fervently to urban areas with hopes of higher per capita incomes, increased employment levels, improved living conditions and well-being, and better chances to integrate into the national territorial economy.
 
Unfortunately, this promise has yet to be fulfilled in many cities. Often, the urbanization process is poorly managed and the mismatch between the growing number of migrants and the institutional and infrastructural capacity of cities is large. Experts argue that “the pace of urbanization, together with its sheer scale, is likely to stress national and urban institutions in many developing countries to their breaking point."

To grow sustainably, cities first need to get their finances right

Ede Ijjasz-Vasquez's picture
Local and municipal governments often operate with limited financial resources, yet they are responsible for delivering an ever-expanding range of infrastructure and services. In many countries, decentralization also tends to put additional pressure on municipal finances, as cities and towns are increasingly expected to take the lead in implementing national policies locally. Yet, this transfer of responsibilities from the national to the local level often does not come with an adequate transfer of resources.
 
In other words, cities are expected to "do more with less"... This can only happen if local government practitioners have the right tools and knowledge to manage their resources as strategically and efficiently as possible. To help cities get their financial house in order, the World Bank has developed the Municipal Finances Handbook (available in English and Spanish), which provides government officials with extensive guidance on controlling expenditures, strengthening revenues, mobilizing external funds, achieving creditworthiness, and adopting good borrowing practices.
 
Lead Urban Specialist Catherine Farvacque-Vitkovic tells us more about the handbook and the associated e-learning course: “Municipal Finances - A Learning Program for Local Governments”.
 
Please note the next edition of our online course will run from March 30 - May 23, 2016. Click here to learn more and sign up (registration ends March 30).

10 tips for implementing a public to public partnership (P2P)

Malcolm Morley's picture

In my last post, I proposed that economic and social value from Public Private Partnerships (PPPs) can be improved significantly if the public sector can identify and exploit the potential to create Public to Public Partnerships (P2Ps). I believe that P2Ps can use their combined scale and power to challenge the private sector to deliver additionality over and above what the public sector can achieve within the timeline and resources available.  They can create an imperative for the private sector to innovate and to use their competencies, capabilities, and capacity to contribute to a PPP and in transforming the Economic and Social Value Equation.  Additionality in PPPs needs to be more than what the public sector alone can achieve.
 
Because many public sector organizations are still at the early stages of looking at P2Ps, I’ve compiled a series of suggestions based upon experience that interested individuals can use to explore P2P development.  Public sector managers need to assess if it’s the right approach for their organizations within the context of the aspirations to deliver enhancements to the Economic and Social Value Equation.

Building alliances, gaining public trust: Chile’s financial management reforms

Dmitri Gourfinkel's picture

Also available in: Español

Santiago de Chile. Photo: alobos Life via Flickr (under CC license) 


Note from the editors: The following is an interview with Patricia Arriagada, former acting Comptroller General of Chile, and Patricio Barra Aeloiza, Head of Accounting Analysis Division of the Comptroller General Office, who have been instrumental in recent reforms of public financial management systems in Chile.

Starting in 2010, Chile embarked on a journey to improve public sector accounting by converging to an international standard of financial reporting by 2016. The country expects to produce its first fully compliant financial statements in 2019. One main objective of this reform is to ensure that financial information generated by the government accounting system is comprehensive, reliable, and useful for decision-making. Another is to increase the levels of fiscal and financial transparency and accountability in the public sector.
 

Patricia Arriagada,
former acting Comptroller General
of Chile

These reforms were driven by the Comptroller General office, is what is known as a “Supreme Audit Institution,” and is responsible for monitoring revenues and expenditures in all parts of the government – in particular, ensuring the quality and credibility of financial management and financial reporting.

How to encourage Moldovans to contribute to their pensions?

Yuliya Smolyar's picture
My last post discussed the challenges and reforms of Moldova’s pension system, but I would like to focus now on the incentives for contributing into a pension system. This issue is especially important for a country like Moldova, where old-age pensions are directly related to the number of contribution years and the level of individual earnings.

Such pension schemes typically envisage some level of redistribution to address poverty and equity concerns. However, excessive redistribution decreases the incentive to contribute to the pension system.

An effectively functioning incentives structure is critical to encouraging workers to contribute more in return for an adequate pension at retirement. Why? Because if the right incentives are not in place, people will avoid contributing into a system that doesn’t offer more than the minimum pension – regardless of the level of contribution.

So, in terms of incentives structure, what particular challenges does Moldova face?

Competitive Cities: Changsha, China – coordination, competition, construction and cars

Z. Joe Kulenovic's picture

Cites are the heartbeat of the global economy. More than half the world’s population now resides in metropolitan areas, making a disproportionate contribution to their respective countries’ prosperity. The opportunities and challenges associated with urbanization are quite evident in the world’s most populous country, whose cities are among the largest and most dynamic on Earth. To better understand what a thriving metropolitan economy looks like in the Chinese context, our Competitive Cities team selected Changsha, the capital of Hunan Province, for inclusion among our six case studies of economically successful cities, as the representative of the East Asia Pacific Region.  
 
As recently as the turn of the millennium, Changsha’s economy was still dominated by low-value-added, non-tradable services (e.g. restaurants and hair salons) – an economic structure commonly seen today in many low- to lower-middle-income cities. Since then, Changsha has achieved consistently high, double-digit annual growth in output and employment, despite its landlocked location and few natural or inherited advantages, such as proximity to trade routes or mineral wealth. With per capita GDP surging from US $3,500 in 2000 to more than US $15,000 in 2012, Changsha has accomplished a feat so many other World Bank clients can only dream of: leapfrogging from lower-middle-income to high-income status in barely a decade, and an economy now comprised of much more sophisticated, capital-intensive industries. 

  

Photos via Google Maps

We took a closer look at the success factors behind this city’s dramatic growth story, and what lessons its experience may hold for cities elsewhere, especially in terms of (1) how to overcome coordination failures and bureaucrats working in silos and (2) how to ensure a level playing field for all firms in the city (that is to say, competition neutrality), even in industries with a strong SOE presence – something still not commonly seen in China these days.
 
Changsha’s (and Hunan’s) growth has clearly benefitted from a highly conducive national macroeconomic and policy framework, including a plan entitled The Rise of Central China, aimed at spurring development in areas beyond the country’s booming coastal regions. This and other initiatives provided for the removal of investment restrictions, more favorable tax treatment, and enhanced infrastructure and connectivity to coastal commercial gateways. China’s massive stimulus plan in 2009 (in response to the global financial crisis and recession) jump-started construction activity in the country, providing further impetus to one of Changsha’s principal industries, construction machinery and equipment manufacturing. And national government interventions in earlier decades – especially the establishment of dedicated research institutes – provided a critical contribution to Changsha’s accumulation of expertise in such disciplines as machinery or metallurgy.
 
Notwithstanding these national initiatives, responsibility for local economic development in China is highly decentralized, with municipal government leaders directly tasked with achieving GDP growth and tax revenue targets. Municipal governments also have rights over almost all land in cities, which can be leased or used as collateral to fund local infrastructure. In Changsha, municipal authorities used these prerogatives to improve their city’s economic competitiveness.

Where World Bank-funded digital technology projects are more successful

Ravi Kumar's picture


© John Stanmeyer/National Geographic Creative. Used with the permission of John Stanmeyer/National Geographic Creative. Further permission required for reuse.

In January 2016, the World Bank released World Development Report 2016: Digital Dividends.
 
The 330 page paper is an insightful read with brilliant analysis of how 'digital technologies have spread fast worldwide, but their digital dividends have not'.
 
Part of the report is about efficacy of digital technologies to improve public service delivery in developing countries.
 
World Development Report 2016 (WDR 2016) team analyzes 530 e-government projects in over 100 countries to determine where the digital technology projects funded by the World Bank are more successful.

The impact of tourism: How can we all do this better?

John Perrottet's picture

Tourism is growing, and growing fast. After surpassing 1 billion international visitors in 2012, we are expecting 1.8 billion by 2030. Tourism is growing faster than the global economy and, for the first time, the statistics for 2015 are expected to show that there were more trips taken to the developing world than to the developed world. But what does this actually mean?

Growth, on its own, is not enough. Destinations and their stakeholders are responsible for ensuring that growth is well-managed; that benefits are maximized; and that any negative externalities are minimized. This requires a continuous process of planning and management that evolves and that can be measured over time.

For the World Bank Group, our clients and our development partners, this process of planning and management is a central interest. How can we help these processes to deliver more and better development impact? What kinds of interventions or types of assistance will deliver the best results? How do you define the best results – for whom? – and how do we measure them?

Being able to demonstrate how the tourism sector contributes to the Bank Group’s twin goals of eliminating extreme poverty and promoting shared prosperity is an imperative for all stakeholders. It’s relevant for national governments, sub-national state agencies, businesses (both multinationals and SMEs), multilateral development banks, NGOs, academics and think tanks. Moreover, it’s vital in helping guide future planning and development, gaining access to and applying for funding, and demonstrating progress to constituents at all levels.

Developing Public to Public Partnerships (P2Ps) that improve infrastructure’s social and economic value

Malcolm Morley's picture

Public sector organizations seek constantly to improve the Economic and Social Value Equation.  The Economic and Social Value Equation is represented by:
 

Increasingly, improvements to this equation are being sought through Public Private Partnerships (PPPs). These improvements have frequently focused on value for money and not always adequately addressed increases in community wellbeing.  The challenge for the future is to achieve transformation of both economic value for money and community wellbeing.  This requires a focus on additionality in PPPs.

How corruption hurts innovation in smaller firms

Caroline Paunov's picture
Firms invest in innovations if they expect future benefits from these investments. Patents and quality certificates are means for firms to claim such exclusive gains. However, in order to obtain quality certificates and patents for innovations firms have to apply to the accredited national institutions. If national officials ask for bribes in exchange of dealing favorably with applications, then the costs of engaging in innovation rise and possibly stop firms from innovating. 
 

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