Over the last 25 years, the relevance of local governments (states, provinces, municipalities, etc.) in Latin America has been constantly increasing.
The process started with a wave of decentralization, particularly in the education and health sectors, followed by the increasing of other responsibilities of local governments (with the accompanying budget!), and most recently topped off by the allocation of additional investment resources fueled by the commodities boom of the mid-2000s. Currently, .
The World Bank has a long history supporting countries in the region as they transition political, administrative, and fiscal responsibilities to subnational levels, as part of national strategies for strengthening democracy, transparency, and efficient service delivery.
The World Bank’s “zero tolerance” policy on corruption makes clear how thieves and embezzlers will be dealt with, if they are discovered. But what about before corruption actually occurs—how should the Bank go about preventing fraud and corruption in the first place?
The divide between prevention and enforcement shapes the World Bank’s fight against corruption in ways both subtle and profound. Enforcement is easier to conceptualize; it is tangible. Someone commits fraud or corruption, by siphoning Bank funds away from their intended purpose. When the Office of Suspension and Debarment slams a company with a sanction, we can quantify the effect.
Prevention, on the other hand, is a slippery idea. It evades definition. Quantifying how much fraud a policy prevents relies on counterfactuals, making it far more difficult to pin down. This means, for better or for worse, innovations and efforts towards the prevention perspective may lag behind enforcement.
Last month I met with ministers and local officials in Addis Ababa to explore areas where we, at the World Bank, can help build institutional capability in Ethiopia. The trip was an enriching experience, both personally and professionally. It was gratifying to see first-hand the good work and commitment to development exhibited by our staff in the country.
We have had a decade-long engagement with Ethiopia with a successful track-record. and the partnership is strong, with a robust future.
During my visit, I gave a lecture at Addis Ababa University on Public Investment Management before an audience of faculty, students, civil society organizations and donors. I shared with them how much public infrastructure investment has done for the country. and three times the average for Sub Saharan Africa.
This effort has contributed to growth that has averaged 10.9 percent since 2004—a figure higher than that of their neighbors or low-income countries on average. Infrastructure investment has also been helpful in expanding access to services and in gaining competitiveness, being a large landlocked country.
World Bank President Jim Kim recently said “we will not reach our twin goals […] unless we address all forms of discrimination, including bias based on sexual orientation and gender identity.”
Sexual and gender minorities are particularly important for the Bank because they are (likely) overrepresented in the bottom 40% -- the target of the Bank’s goal to promote shared prosperity.
Why only “likely”? Because robust data on LGBTI development outcomes is rare, even in high income countries. With support from the World Bank’s Nordic Trust Fund, we are seeking to fill some of these data gaps, starting with research in the Western Balkans.
What we do know is that, across the board, barriers to education and employment contribute to greater chances of being poor – and this may be worse for LGBTI individuals.
Available data on Lesbian, gay, bisexual, transgender and intersex (LGBTI) people shows that youth are more likely to face barriers in getting a good education. It’s also harder to find – and keep – a job, pushing LGBTI people further into poverty.