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Global Economy

Boosting revenues, driving development: Join us to discuss!

Julia Oliver's picture


In a live-streamed event from 1 pm to 2 pm EST on Friday, April 21, the World Bank will host a discussion of a critical development issue: Taxes. The event, Boosting Revenues, Driving Development: Why Taxes are Critical for Growth, will include an illustrious list of panelists, representing many different perspectives:

A little handbook that could help bring big results – in revenues and investor certainty

Jan Loeprick's picture
Graphic: Boris Balabanov

In today’s globalized world, a corporation might have a retail store in one country, a factory in another, and financial services provider in yet a third.

Corporate interconnectedness has brought investment and growth, to be sure, but it has also added complexity to the work of tax authorities. Increasingly, developing-economy governments come face-to-face with corporations that employ sophisticated strategies with the aim of paying fewer taxes. With our recently published handbook, "Transfer Pricing and Developing Economies: A Handbook for Policy Makers and Practitioners,” we hope to support efforts to protect countries’ corporate tax bases.

Tax treaties: Boost or bane for development?

Jim Brumby's picture
  Tax treaties are like a bathtub; a single leaky one is a drain on a country’s revenues.  Photo: Kris Schroeder 


Tax officials and experts grappled with the issue of tax treaties several weeks ago at the IMF-World Bank Annual Meetings. This arcane subject has now emerged as a new lightning rod in the debate on fairness in international taxation. As citizens demand that corporations pay their fair share of taxes and some governments struggle to raise enough revenues for basic services, tax treaties present difficult issues.

Here are 10 ways to fight corruption

Robert Hunja's picture


1. Corruption is not only about bribes: People especially the poor get hurt when resources are wasted. That’s why it is so important to understand the different kinds of corruption to develop smart responses. 
 
2. Power of the people: Create pathways that give citizens relevant tools to engage and participate in their governments – identify priorities,  problems and find solutions.
 
3. Cut the red tape: Bring together formal and informal processes (this means working with the government as well as  non-governmental groups) to change behavior and monitor progress.

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

Nestor Coffi's picture
Also available in: French
​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.

More voices mean smarter cities

Stephen Davenport's picture
Urban cityscape.  Photo: © Curt Carnemark / World Bank


With the ink barely dry on the Sustainable Development Goals, naturally the just-completed Open Government Partnership annual summit focused on how greater openness can accelerate progress toward the goals.
 
The open government agenda is most closely linked to the ambitious Goal 16 on Peace, Justice and Strong Institutions, which among other targets includes the objective of ensuring “responsive, inclusive, participatory and representative decision-making at all levels.” Though progress in this area is maddeningly difficult to quantify, evidence increasingly shows that participation, the next transparency frontier, matters to development outcomes. Making the target explicit, it is hoped, will galvanize efforts in the right direction.
 
There are many issues one could propose to tackle with citizen engagement strategies, but to narrow the topic of discussion, let’s consider just one: enabling smart growth in the world’s exploding cities and megacities.  Estimates suggest that by 2035 most of the world’s extreme poor will live in urban areas.

Six reasons to do Citizen Engagement

Mario Marcel's picture
 Chhor Sokunthea / World Bank
Kampong Thom Province, Cambodia. Photo: Chhor Sokunthea / World Bank


Two weeks ago, we launched an exciting new Massive Open Online Course (MOOC) on Citizen Engagement hosted on Coursera and in partnership with the London School of Economics, the Overseas Development Institute, Participedia, and CIVICUS.

To date, over 15,000 people from 192 countries (45% women) have enrolled in the course and our digital footprint continues to be strong:  the launch event page has had over 2,500 unique visitors while many continue to use the hashtag #CitizensEngage on Twitter.
 
These healthy metrics are a strong indication of just how timely and significant this issue has become and is the latest reason why I firmly believe in the power of engaging citizens to build good governance. This MOOC therefore is a key component of the World Bank Group’s commitment to develop a citizen perspective on governance to improve the contribution of institutions to development.
 
Too often citizen engagement is seen with suspicion, skepticism or fear by policymakers. Yet let me offer six compelling reasons why it is necessary, feasible and useful to do it:

Busting 5 myths on political-economy analysis

Stefan Kossoff's picture
A young Egyptian protester holding an Egyptian flag, Cairo, Egypt. Photo: Kim Eun Yeul / World Bank


“There has been a broad recognition amongst economists that “institutions matter”: poor countries are not poor because they lack resources, but because they lack effective political institutions”. Francis Fukuyama, the Origins of Political Order, Vol 1 (2009) 
 
For development professionals, there is no getting away from the fact that politics shapes the environments in which we work—that our programs can and do fail when we don’t take politics into account. But despite growing evidence that political economy analysis (PEA)  can contribute to new ways of working and ultimately better results, the politics agenda remains what Thomas Carothers calls an “almost revolution” in mainstream development practice.
 
There are many factors at play: limited staff capacity to engage with politics, bureaucratic incentives to meet lending targets, a preference for best practice solutions and institutional blueprints. Many continue to argue that it is not the business of development banks or aid agencies to analyse politics, let alone act on key findings. This resistance is posited on several arguments—or myths—which I address below.

Aid is politics

Sakuntala Akmeemana's picture



A few weeks ago, the UK’s Department for International Development (DFID) concluded a three-day visit to the Bank with a presentation by its Chief Economist, Stefan Dercon. ‘Aid is Politics’ traversed the big picture debates in economics, politics and development with ease, but the focus was the practice of aid.   
 
Once we’re on the ground at scale, we become part of the politics.  Not only do domestic politics shape the impact of our interventions, our programs today affect politics tomorrow.   Economic policy, although seemingly about ‘removing market failures and correcting distortions’, impacts upon the distribution of rents or income, at times adversely affecting political equilibria by benefitting already powerful groups.
 
Since walking away from politically fraught environments is not an option (aid practitioners are “the intervention squad”), we need to constantly analyze, adapt programing to politics, be creative, make political engagement endogenous, and try to nudge aspects of the political settlement to a better place.   
 
Although Stefan gave a lively  presentation, what struck me was not the content -- over the last decade, a virtual consensus has formed in development praxis that political drivers shape development outcomes, and that effective interventions require both deep understanding of the distribution of power and resources in a given country and the flexibility to adapt to changing context. Most striking was the mission underlying Stefan’s comments.

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