We also want to thank you for reading, contributing and engaging on what it will take to help governments build capable, efficient, open, inclusive and accountable institutions.
The idea that economic growth needs good governance and good governance needs economic growth takes us to a perennial chicken-and-egg debate: Which comes first in development—good governance OR economic growth? For decades, positions have been sharply divided between those who advocate “fix governance first” and others who say “stimulate growth first.”
Overjoyed at the emergency rehabilitation of Bauerfield International Airport, Vanuatu’s gateway for travelers, Linda Kalpoi, the general manager of the Vauatu Tourism Office, was in buoyant spirits as she attended the May 6 ceremony announcing the repair’s completion.
Vanuatu yearned for good news. Still recovering from Cyclone Pam’s devastation in March 2015, it was hit by political turmoil after the unprecedented conviction of 14 members of Parliament in October 2015. Then, on January 22, 2016 – the same day Ni-Vanuatu citizens were casting ballots for a snap election – Air New Zealand suspended flights due to safety concerns over the runway condition. Qantas and Virgin Australia followed suit a week later. With only a few airlines still operating, the country lost a sizeable chunk of international tourists.
Airport planning in Vanuatu has long been fraught with differing opinions and priorities. Multiple governments with conflicting visions for developing international air transport, as well frequent changes to the staff and leadership of Airports Vanuatu Ltd (AVL), had left the runway in critical need of repair.
Selecting contractors with the right capacity and experience for large value works contracts is critical for implementation and timely completion of the works.
How do you achieve that?
The China’s Fujian Meizhou Bay Navigation Improvement Project offers some lessons of how the Bank team successfully worked with the client in selecting the right contractors through appropriate procurement strategy and due diligence.
The total project cost is US$138 million and the Bank loan is US$50 million. The project seeks to improve the capacity of the main navigation channel in Meizhou Bay and enhance the management capacity of the Meizhou Bay Harbour Administration Bureau.
GoPro videos have become ubiquitous among mountain bikers. The more adventurous the journey the better. Go viral on social media, and you have a winner. You might even get a payout from YouTube. But we want to discuss another way to make money. Money for local roads in the Philippines. We want to discuss a way that officials and citizens could make a GoPro-type movie, convert it into a digital map, and possibly receive a payout from the Department of Budget and Management under a new program called Kalsada.
It’s More Fun in The Philippines!
The Philippines is a tropical archipelago of over seven thousand islands, making for many jewel destinations. The country’s tourism slogan “It’s More Fun in the Philippines” tries to capture the spirit of a friendly, welcoming and fun-loving people which the adventurous tourist will experience. Palawan was recently voted as the planet’s best island destination by a top travel magazine. In search of fun, we tried to visit one of its towns, Port Barton, two years ago. But chronic infrastructure means that sometimes you are in for a rough ride. Confronted with bad roads, we were only able to actually make it to this idyllic destination many months later.
We know corruption in developing countries affects poor people the most. It also impacts firms in many ways.
Vote buying has shaped much of Philippine politics throughout history. For many politicians, distributing private goods and cultivating patronage to individual supporters is one of the most effective electoral strategies.
While the line between public and private is traditionally blurry, people who are used to this relationship with those who hold positions in government tend to measure politicians’ performance in terms of how much they provide private goods as opposed to broad public goods.
But though it may have been prevalent, vote buying has been a serious constraint in the country. Research has shown that practices such as vote buying and political dynasties undermine public service delivery and poverty reduction. How can these practices, which are so deeply embedded in Filipinos’ political way of life, begin to change?
China has experienced substantial economic growth over three decades, with sustained annual GDP growth rates of 8%-10%. In order to maintain the growth, the government seeks to accelerate the process of industrialization and urbanization started in the 12th Five Year Plan (2011-2015).
China has made investment in transport infrastructure a centerpiece of its strategy, with investment in the rail sector specifically increasing, in recognition of lower cost, higher energy efficiency, and lower carbon emission of rail transport compared with road and air transport.
, which includes 16,000 kilometers of rail connecting 160 cities on the mainland. China’s Mid- and Long-term Railway Network Plan (2004-2020), adopted in 2004 and updated in 2008, contains an ambitious program of railway network development, with an aim of increasing the public railway network from 75,000 km to 120,000 km, among which 25,000 route-km will be fast passenger railway routes.
Procurement of high-speed railway projects in China is complex and transaction heavy. The technology is constantly changing due to innovation by designers and manufacturers, and the inclusion of multiple agencies and officials can increase the complexity.
With the support of the World Bank, the Government of Vietnam is making strides in addressing fraud and corruption risks in the management of development loans more broadly than before. Thanks to a new strategic action plan that cuts across the national, sectoral, and project levels.
The World Bank’s Governance Global Practice is working with the government of Vietnam to design and implement this new strategic action plan on how to make the management of Official Development Assistance (ODA) loans less liable to fraud and corruption. As a result, a healthy public policy debate around the risks surrounding ODA loans and how best to address them has arisen in Vietnam, as shown by the last session of its National Assembly in 2014.
Managing large civil works contracts can be a challenge.
In Vietnam, while most large infrastructure projects are financed by multilateral and bilateral development partners under the form of Official Development Assistance (ODA), their implementation is contracted out and often delayed by cost overruns and quality concerns.