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Public Sector and Governance

The War is Over. What Do We Do Now? Post-Conflict Recovery of the Private Sector in South Sudan

Steve Utterwulghe's picture

The White Nile in South Sudan. Photo by Steve Utterwulghe.

As I was landing in Juba, the bustling capital of South Sudan, I couldn’t help but reminisce about my days working in Khartoum for the UN Deputy Special Representative of the Secretary General. The war between the North and the South, of what was then, in 2004, still the Sudan, was raging as the peace negotiations were taking place in a plush resort on the shores of Lake Naivasha in Kenya. I was mainly focusing on guaranteeing access to the people of the Nuba Mountains, one of the three fiercely contested areas between Khartoum and the Sudan People’s Liberation Movement/Army (SPLM/SPLA). I was doing my fair share of shuttle diplomacy, going back and forth between the SPLM/SPLA leadership based in Nairobi and the Government of Sudan in Khartoum. At that time, hopes were high that one would soon see the end of decades of a bloody war in Africa’s largest country. The Comprehensive Peace Agreement was finally signed in 2005. In 2011, South Sudanese participated in a referendum and 99 percent voted for independence. South Sudan became the newest country in the world.
But what should have been a new era of peace and prosperity quickly turned into a feeling of dejà vu. Dreams were shattered as a new internal violent conflict broke out in December 2013, putting the progress achieved at significant risk and disrupting economic activities and livelihoods.
The country is very rich in natural resources, including oil, minerals and fertile arable land. However, with 90 percent of its population earning less than US$1 per day, South Sudan is ranked as one of the poorest countries on the planet. South Sudan remains an undeveloped economy facing important challenges, including high unemployment, weak institutions, illiteracy and political instability. The economic overview of the country by the World Bank suggests that “South Sudan is the most oil-dependent country in the world, with oil accounting for almost the totality of exports, and around 60 percent of its gross domestic product.” The conflict has dramatically affected the production of oil, which has fallen by about 20 percent and is now at about 165,000 barrels per day. This, combined with the sharp global drop in oil prices, has greatly affected the fiscal position of the government.

In such an environment, private sector development is a must, since it has the potential to create market-led jobs and growth. However, private sector growth requires a conducive investment climate and an enabling business environment.
South Sudan has made progress in this area, thanks in part to support from the international community, including the World Bank Group. Yet more needs to be done. South Sudan ranks 187th out of the 189 economies in the Doing Business ranking, just ahead of Libya and Eritrea. In addition, among the top constraints reported by firms in the World Bank Group's Enterprise Survey, 68 percent mention political instability and 58 percent cite access to electricity, followed closely by access to land and finance. 

A call for action and the way forward for reform in Francophone Africa

Nestor Coffi's picture
​Number of accredited chartered accountants serving in public practice/million inhabitants in country.

With the call for action issued last month in Dakar, the commitment was clear: Francophone countries in Africa will seek to improve the well-being of their citizens by accelerating the transformation of public financial management systems. They will take this initiative through strong partnership between governments and the accountancy profession with the support of the development partners.
The call was made by 200 high-level delegates from 20 countries: decision-makers and practitioners from both the public sector and professional accounting organizations, and representatives from multilateral development organizations and civil society.
“The effective implementation of these reforms will improve the use of public resources to enhance delivery of services, transparency, accountability, and citizens’ trust in our governments,” said the Honorable Ansoumane Condé, Minister for Budget of the Republic of Guinea, after reading the call on October 29.

How to more proactively disclose information in public-private partnership projects? Your input needed

Robert Hunja's picture

For too long, there has been a dearth of literature and guidance on policy and practice in public-private partnership (PPP) disclosure and a wide gap in understanding the mechanics of disclosure by practitioners within governments and the private sector. The just-released Framework for Disclosure in Public-Private Partnership Projects, a systematic structure for proactively disclosing information, fills this gap. Two additional documents, Jurisdictional Studies and Good Practice Cases, provide relevant background and resources, complementing the goals of the Framework.
Your input and PPP experience (locally, regionally and globally) are imperative to help us get this framework right. While the documents have been drafted, we are eager to incorporate feedback that will make them better. Please take a few minutes to read the documents and provide us with your input on this page to further refine this work.

A tool at the right time for tax reform

Jim Brumby's picture

In today’s world, international aid is fickle, financial flows unstable, and many donor countries are facing domestic economic crises themselves, driving them to apply resources inward. In this environment, developing countries need inner strength. They need inner stability. And they deserve the right to chart their own futures.

This is within their grasp, and last week the launch of an unassuming-but-powerful tool marked an important step forward in this quiet independence movement. It’s called the TADAT, or Tax Administration Diagnostic Assessment Tool. At first glance, this tool may look inscrutable, technical, and disconnected from development. But listen. 

Are you GovSmart? Take our November quiz to find out!

Alice Lloyd's picture

Last month we blogged about public financial management, four ways governments are making girls’ lives better and much more.
Take our quiz to sharpen or refresh your knowledge about issues related to governance.
And let us know if you're "GovSmart." Please tweet your score @wbg_gov!


What El Niño teaches us about climate resilience

Francis Ghesquiere's picture
It was recorded by the Spanish conquistadors, and triggered famines that have been linked to China’s 1901 Boxer Rebellion and even the French revolution.

Named by Peruvian fishermen because of its tendency to appear around Christmastime, El Niño is the planet’s most large-scale and recurring mode of climate variability. Every 2-7 years, a slackening of trade winds that push sun-warmed water across the Pacific contributes to a rise in water temperature across large parts of the ocean. As the heat rises, a global pattern of weather changes ensues, triggering heat waves in many tropical regions and extreme drought or rainfall in others.

The fact that we are undergoing a major El Niño event should cause major concern and requires mobilization now. Already, eight provinces in the Philippines are in a state of emergency due to drought; rice farmers in Vietnam and Thailand have left fields unplanted due to weak rains; and 42,000 people have been displaced by floods in Somalia.

And this is before the event reaches its peak. Meteorologists see a 95% chance of the El Niño lasting into 2016, with its most extreme effects arriving between now and March. Coastal regions of Latin America are braced for major floods; India is dealing with a 14% deficit in the recent monsoon rains; and poor rainfalls could add to insecurity in several of Africa’s fragile states. Indeed, Berkeley Professor Soloman Hsiang has used historical data to demonstrate that the likelihood of new conflict outbreaks in tropical regions doubles from 3% to 6% in an El Niño year.

But despite its thousand-year history, the devastation associated with El Niño is not inevitable. Progress made by many other countries since the last major event, in 1997-98, shows that we can get a grip on its effect – and others caused by climate trends.

What does art have to do with technology?

Anna O'Donnell's picture
How youth in Pakistan's Khyber Pakhtunkhwa are linking to the creative economy and curating culture 
Art Tech Festival
Join us at the Art Tech Festival in Peshawar! Register to attend on the website:

What does art have to do with technology? Just ask Mahoor Jamal, a fashion illustrator and portrait artist from Peshawar, who uses Instagram—an online photo site—to showcase her work and connect with an international audience and to sell more of her work. Or just ask Jawad Afridi, a photographer and the founder of Humans of Peshawar. He is also dependent on social media for his work, using Facebook to exhibit his photographs of the people of Peshawar. This has earned him customers and recognition beyond Pakistan and he has recently contributed to the publication of a book in the UK. These young artists, and many more, will soon be getting together in the Pakistani province of Khyber Pakhtunkhwa to celebrate art and technology over two days at the ArtTech Festival.

Formerly known as the Northwest Frontier Province, Khyber Pakhtunkhwa has historically been an important trade route between Central and South Asia. This position resulted in an amalgamation of unique cultures, traditions, ethnicities, histories and monuments that have shaped today’s artists, artisans and musicians from KP. KP is now emerging from a period of instability, and is looking to the future to identify opportunities for its youth in the knowledge economy.

The ArtTech Festival will be the first step in raising awareness and building a community of youth interested specifically in the cutting edge intersection of art and technology. As a “sister” festival to the larger Digital Youth Summit, the Festival creates a space and platform to encourage cross disciplinary creativity and to nurture entrepreneurship in the creative and cultural industries.

Why those promoting growth need to take politics seriously, and vice versa

Duncan Green's picture

Nicholas Waddell, a DFID Governance Adviser working on ‘Governance for Economic Development’ (G4ED) explores the links between governance and economic growth. 

Should I play it safe and join a governance team or risk being a lone voice in a sea of economists and private sector staff? This was my dilemma as a DFID Governance Adviser returning to the UK after a stint in East Africa. I gambled and joined the growth specialists in DFID’s newly created Economic Development arm.  A year in, I now think differently about the relationship between growth and governance.

Man working inside a large reinforced steel tube, PhilippinesEradicating poverty will not be possible without high and sustained growth that generates productive jobs and brings benefits across society. Historically, this has included boosting productivity within existing sectors as well as rebalancing economies towards more productive sectors (e.g. from agriculture to manufacturing). Such structural change or economic transformation has lifted millions from poverty.

Economic transformation can have a strong disruptive effect on political governance – giving rise, for example, to interest groups that push for accountable leaders and effective institutions. As countries get richer, more effective institutions also become more affordable. Over time, economic transformation can therefore advance core governance objectives.

But this is easier said than done. Economic development is an inherently political process that challenges vested interests. Often the surest ways for elites to hold onto power and profit aren’t in step with measures to spur investment, create jobs and foster growth. Shrewd power politics can be bad economics.

Morocco’s social contract and civil liberties

Paul Prettitore's picture
Moroccan Flag - Arne Hoel l World Bank

The Arab Spring and its aftermath have inspired much 
discussion of the social contracts that had defined the relationship between citizens and the state in the Arab world. In the past, the typical social contract of a state in the Middle East or North Africa broadly afforded that citizens would be provided jobs and public services, and presumably political stability, in return for limiting civil liberties that could be used to challenge governing regimes. The political transition in Morocco has provided space for addressing civil liberties in the debate on new social contracts. 

Four critical ingredients that Pakistan needs to rev up its economy and realize its potential

Muhammad Waheed's picture

Economic Growth in Pakistan is expected to accelerate from 4.0% in 2014 to 4.5% in 2016. What are some reasons for this moderate improvement and how could it unlock its potential to grow even faster in the future so that more of its people can benefit from and contribute to greater prosperity?

How is Pakistan doing? There has been an improvement in Pakistan’s economic environment due to lower domestic and external risks. Foreign exchange reserves have increased to an appropriate level given the size of Pakistan’s imports. Pakistanis working abroad sent home about $18.5 billion in FY2014/15 which contributed to financing the trade deficit. Government efforts to stabilize the economy have been greatly aided by the decline in international oil prices which has significantly reduced the import bill. Fiscal policy has also become more prudent, although further efforts will be needed to safeguard the hard-earned stability.

Pakistan needs to invest more to address the country’s challenges. The positive economic environment provides Pakistan with an opportunity to address structural bottle necks that are holding Pakistan back from realizing its immense potential, which is bolstered by a large, young and growing population. However, the country’s development outcomes have not kept up with its income growth and significant public and private investments are critical to realize the aspirations of its population and improve the country’s competitiveness.

The share of investment to GDP remains minimal at 15%, about half of the South Asian average at 30% and one of the lowest in the world. This means not that enough infrastructure is being built, people don’t have access to sufficient levels of energy and water, the quality of schools and hospitals are not optimal.  More worryingly, private investment as a share of GDP has been declining and stood at less than 10% in FY2014/15. Several factors are contributing to this low investment level.