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October 2015

A conference to improve public finance management in Francophone Africa

Samia Msadek's picture

Also available in: French

Photo © Dominic Chavez/World Bank.


This week, officials from finance ministries and leaders of the accounting profession from across Francophone Africa will gather in Dakar, Senegal from Oct 28 to 30 to chart a path forward in their countries’ development. They will focus on an area that is often ignored, but is vital to national success and prosperity: public financial management. They will focus on financial reporting, which is also known as “the way governments keep track of your money.”

This topic is important to you, citizens of the world, of the African continent. How governments manage their taxes, their borrowing, their spending, and the ways they account for these forms of transactions – income, borrowing and expenditure – are essential to economic growth, to poverty-reduction, and to ensuring that the region’s poorest can improve their lives.

In many parts of Francophone Africa, accounting practices have a lot of room to improve. In particular, financial reporting and auditing need reforms, according to ongoing research by the World Bank and others. Policy-makers do not always have accurate information about the money available to provide vital and quality public services, such as school-teachers or the construction of health clinics or roads.

Are you GovSmart? Take our quiz and find out!

Alice Lloyd's picture
Source: Creative Commons



Recently we blogged about open governance at the World Bank, Latin American State-Owned Enterprises, community engagement in India and 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!







 

How to manage the extractives sector? There’s a book for that!

Håvard Halland's picture
Photo Credit: Cor Laffra


Let’s assume you are a Finance Minister or ministry official of a country that has newly discovered oil or minerals.

What actions lay ahead? Or, if oil and mineral production is ongoing, how can you strengthen the public management of the extractive sector, which is a mainstay for national economies around the world?  
 
Planning for the development of an unfamiliar and complex sector can be daunting. How should sector policy objectives be determined?

Which economic, accounting and taxation principles should be considered? What kinds of laws and regulations would a government need to adopt? What roles do various ministries and government agencies play in administering these laws? How do technical, environmental and social considerations fit into the scheme of things? What about the investment of resource revenues, or the potential for new industry linkages?

Governance and sovereign risk in resource rich emerging markets

Michael Jarvis's picture
Brazil: Resource Rich Emerging Market - World Bank photo collection

Does governance matter?

Yes. Intuitively to many development practitioners, the link between governance and growth is established in the literature. But, what about hard-nosed financial investors? Is there a link between governance and financial returns? Initial cutting-edge research suggests that there is a link. And investors are increasingly paying attention to governance. 

According to a study conducted by Global Evolution, an asset manager that specializes in emerging and frontier market sovereign investments, shows that governance may be a significant driver of sovereign bond returns. According to Ole Hagen Jørgensen, Research Director of Global Evolution, “improvements in a country’s Environmental, Social, and Governance (ESG) scores – and particularly the “G” of governance – significantly correlate to pricing of risk, credit ratings and return generation of sovereign bond funds in emerging and frontier markets.”

​For governments, this can mean cheaper to access to credit, helping create fiscal space.

The SDGs indicators on rule of law need to respect the targets agreed in September

Nicholas Menzies's picture
Click here for an interactive map of countries already collecting “legal needs” survey data which could inform the SDGs rule of law indicators: http://map.gastonpierri.com/

On Monday, the final round of discussions will get underway in Bangkok on the indicators to measure the Sustainable Development Goals that were agreed by all UN Member states in New York last month. The agreement from New York calls for the underlying indicators to “preserve the political balance, integration and ambition” of the agenda.

Target 16.3, as agreed in New York, is to “Promote the rule of law at the national and international levels and ensure equal access to justice for all.” The proposed indicators for 16.3, to be discussed in Bangkok, do not respect the ambition of the target as they both focus on the criminal justice system. Whilst criminal justice is important to many people’s lives – in truth, only a small percentage of the population comes into direct contact with the criminal justice system. Sustainable development is about much more.

Is adoption of governance as a SDG an empty gesture?

Vinay Bhargava's picture



The adoption of governance focused SDG #16 and its targets is being claimed a great victory for proponents of good governance.
 
All UN member states approved the goal to “build effective, accountable and inclusive institutions at all levels” and committed to develop action plans to achieve targets that “substantially reduce corruption”, practice “responsive, inclusive and participatory decision making”, and “ensure public access to information.”
 
On the surface this appears to be a major paradigm shift from the MDGs.

A closer examination suggests that these intentions have a caveat that may weaken the supposed shift in the political economy of governance for development. All of these commitments are subject to national legislations that vary broadly in scope in terms of access to information, public participation and strength of anti-corruption policies and institutions. Moreover, governments involved have different opinions on what key concepts such as rule of law, fundamental freedoms, and accountable institutions mean.  

Doing development differently: what does it mean in the roads sector?

David Booth's picture



There is no sign that the revival of interest in adaptive and entrepreneurial approaches to development work is going tail off soon.

That’s why the demand is growing for indications of how the broad principles, as summarised in the Doing Development Differently Manifesto, apply to the various sectors where interested practitioners are found.
 
Fred Golooba-Mutebi and I have just published an ODI working paper that begins to fill that gap for one particular economic infrastructure sector, road construction and maintenance. The country is Uganda. The purpose of the study was to revisit a 2009 paper on the political economy of reform in the sector, which was followed by the launching of a DFID-funded programme called CrossRoads.
 

Transforming livelihoods through good governance and seaweed farming

Alice Lloyd's picture


​A tourist eyeing the gorgeous azure waters around Zanzibar, Tanzania, might think about taking a frolic in the waves, but for local fishers, the sea means business--the seafood business.

How Colombia is improving access to justice services

Jorge Luis Silva Mendez's picture
A female farmer near Santander, Colombia. Photo: © Charlotte Kesl / World Bank


Proposed Sustainable Development Goal 16: “Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.”

The UN General Assembly adopted this ambitious objective as one of the 17 new Sustainable Development Goals (“SDGs”) when they convened last week.  This is a landmark recognition of the importance of justice services for poverty eradication and sustainable, inclusive development. But how will it work in practice?

In the midst of ensuing debates around this question, Colombia offers valuable lessons. In a country torn by almost seven decades of civil war and conflict, access to justice is critical for the advancement of peace and development. Yet inefficiencies of the courts, and their concentration in select urban centers, raise the cost of access. Compounded by lack of information, these barriers have kept justice services out of reach for many citizens, particularly for the poor and most vulnerable.

What does it take to be a good citizen?

Alice Lloyd's picture


Recently I was asked what does it take to be a good citizen? 

As I was coming up with my list, I realized that the basic rules of being a good citizen were taught to me at a young age – in kindergarten, actually.  Here’s my partial list:
  • Share everything.
  • Play fair.
  • Don't hit people.
  • Put things back where you found them.

Four ways governments are making girls’ lives better

Alua Kennedy's picture

Also available in: العربية



As the International Day of the Girl Child is coming up on October 11, it reminds us of an important role governments can play to help girls lead their own lives. Investing in girls’ empowerment is a smart way to invest in a country.
 
Check out these four videos about how governments of Liberia, Senegal, India and Burundi are working to empower girls in their countries. 

STEPing ahead with procurement reform

Robert Hunja's picture



As part of the Bank’s ongoing effort to adapt to the changing needs of client countries, the Bank is modernizing its procurement framework. This will help us deliver stronger project results while maintaining the integrity and high standards of our procurement framework.

The two key elements of this transformation in Bank procurement involve the Procurement Policy Reform, to take effect in 2016, and STEP, the Bank’s new electronic procurement planning and tracking platform.
 
On July 21, 2015, the World Bank’s Board of Executive Directors approved the new Procurement Framework, which will go into full implementation during 2016. This new framework allows the Bank to better and more effectively meet the varying needs of clients by ensuring greater flexibility and choice of methods. Alongside the new framework, an electronic platform, Systematic Tracking of Exchanges in Procurement, branded as STEP, is being rolled out and will be implemented worldwide in the coming months.

This system jointly developed by Operations Risk Management (OPSOR) within Operations Policy and Country Services (OPCS), the Global Governance Practice (GGP), and Information Technology Services (ITS) departments, is a cornerstone of the World Bank Group’s procurement reform efforts and goes hand-in-hand with policy and procedural changes.

Breaking down the doors: Bringing contract deals into the open

Georg Neumann's picture
 Department for International Development - Supplying medicines (CC BY 2.0)
Photo: Department for International Development : Supplying medicines (CC BY 2.0)

 
Fighting corruption was at the center of the 16th International Anti-Corruption Conference in Putrajaya, Malaysia that ended in September. Not surprisingly, Open Contracting, an approach to bring deals between governments and businesses into the open, was identified as a key tool in fighting corruption in the Putrajaya Declaration that emerged from the Conference.
 
Government contracts are one of the government activities most vulnerable to corruption. As contracts cut across sectors, every service a government provides can be affected by it. Life saving medicines, and schools buildings, and infrastructure projects such as roads, ports, bridges, estimated at US $1 trillion worth, provide opportunities for agreements behind closed doors that can harm societies in the long-term.

Driving change in challenging contexts: four issues to address

Verena Fritz's picture
During war, markets help people survive. Salad traders in Garoule market, Mali.
© Irina Mosel / ODI


Recently, I participated in an ODI-organized conference on ‘Driving change in challenging contexts’. The ongoing refugee crisis in Europe as well as the adoption of the SDGs is bringing efforts to revive and accelerate development in challenging contexts to the forefront of political attention.

​Progress in such contexts is inevitably difficult. But actual practices are also still far from the possibility frontier of what could be done. Four issues stand out: