They spend hours waiting in line at tax offices.
In March 2014, with support of the World Bank, a Delivery Unit (DU) was set up in the Romanian Prime Minister’s Chancellery. Its mission: Get better results quicker for the PM in four priority areas.
Tax administration was one of them. The PM’s concern was the pain of paying taxes. Offering online services, for the first time, was one of the ways to decrease the cost of compliance. The DU estimated that they could save the taxpayer up to 12 days a year of waiting at the tax office.
The DU’s role was to plan for these improvements together with the Romanian Ministry of Public Finance and the Tax Administration Agency (NAFA). In a Delivery Agreement, the specific targets, metrics, activities, deadlines and responsibilities were spelled out. The DU was to then monitor the progress monthly against an agreed trajectory and help unblock problems in implementation.
In September 2014, the NAFA launched the online taxpayer platform called Private Virtual Space (PVS). It allows taxpayers to file their tax returns, get their tax bills and see their payments. The target was to enroll 30% of the eligible taxpayers by December 2015. Though the DU tracked progress monthly, the enrollment rate was still at 0.6% in June 2015. Clearly, the monitoring on its own did not help.
The Open Government Partnership (OGP) just concluded its third Global Summit. Government, civil society, and development partner representatives from over one hundred countries met in Mexico City to strengthen international cooperation around the open government agenda.
This year the summit emphasized connections between the OGP mission and the slate of newly adopted Sustainable Development Goals (SDGs) aimed at ending extreme poverty by 2030.
Delegates to the summit vowed to contribute to achievement of SDG Goal 16, and committed to mainstreaming open government principles such as including transparency, citizen participation, accountability and integrity, and technology and innovation into implementation of the entire 2030 Agenda for Sustainable Development.
Recognizing that collaborative, multi-sectoral approaches lead to better results, the World Bank intends to anchor its support for open government reforms and initiatives in OGP member countries’ national action plans. The result of extensive consultations with government and civil society stakeholders, OGP national action plans are country-developed strategy papers designed around the specific open government needs, demands, and goals of a given country.
As an example, the Bank’s Open Aid Partnership (OAP) has been working for four years to make information on aid-financed activities more transparent and accessible. This mission clearly fits within the umbrella of increasing government openness. Now, OAP is working to align its engagements with the OGP in joint pursuit of the Global Goals. It does this by offering specific expertise in open aid data as countries develop their national action plans and implement related transparency commitments within the OGP framework.
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.
We know corruption in developing countries affects poor people the most. It also impacts firms in many ways.
Also available in Spanish
How much are the government buildings, lands and other publicly-owned real estate of your country worth? According to recent publications, a lot. A 2013 IMF study estimated that non-financial assets are worth an average of 67 percent of the GDP of a selection of 32 countries.
More recently, a book by Dag Detter and Stefan Fölster underscored the incredible potential of improving public wealth management. According to their calculations, a one percent increase in returns to public assets worldwide (including real estate) would generate gains equal to roughly one percent of global GDP! In the United States, a one percent increase in yields from federal assets would be equivalent to the revenue raised from a four percent tax increase. But And what can they do to make better use of what they have?
Seeking to reap the fruits of smarter public real estate management, representatives from twenty countries from around the world met in Mexico last September. Participants discussed how to turn the management of public real estate assets into a tool for good governance, including strategies to optimize the use of government property and generate savings in maintenance. The conference was organized by The Workplace Network (TWN), an international public real estate management network, with participation of the World Bank and the Inter-American Development Bank.
An expatriate Indian physics professor, when traveling back home to India, found himself harassed by endless extortion demands. As a way to fight corruption by shaming the officials who ask for bribes, the professor created a fake currency bill: the zero-rupee note.
The notes are identical to Indian banknotes, but carry the slogan, and the pledge, .
Vijay Anand, president of the non-governmental organization 5th Pillar, thought the idea could work on a larger scale. Initially, the NGO printed 25,000 zero-rupee notes and distributed them to students in the southern state of Tamil Nadu. Since 2007, the NGO has distributed more than one million bills in five languages, covering 600-plus institutions. Volunteers hand them out near places where officials often solicit bribes, such as railway stations and government hospitals.
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?
Crises in access to water are making headlines around the world. Among difficult policy pathways to respond, convincing people to change their behavior and reduce their consumption can be one of the hardest.
This post gives us a promising picture from Belén, a small town in Costa Rica. Of Belén’s 21,633 inhabitants, 99.3% have access to water service, but shortages are anticipated by 2030. Our recent study demonstrated that the government could cheaply encourage citizens to save water by enabling them to compare their consumption with that of their peers.
This is a timely lesson, as the United Nations estimates that more than two-thirds of the world’s population will live in water-stressed regions by 2025. Demographic and economic pressures make water management an increasingly urgent policy priority even in water rich areas like Latin America, home to nearly 31% of the world's freshwater resources.
While Costa Rica is relatively well-endowed with water resources, current demand virtually matches production capacity Risks of water deficits and existing shortages are heightened by overdevelopment of areas with limited water supply. To help address these challenges, we partnered with local authorities in the small municipality of Belén to conduct a randomized control trial, capturing an innovative approach that can help conserve water across the country, and in similar contexts around the world.
The project built on insights from the growing field of behavioral economics, which challenges the underlying, intentionally simplified assumption of standard models: that people make rational decisions based on a self-interested cost-benefit analysis. Behavioral economics borrows from other sciences to consider the full scope of social and psychological influences on human decision-making.
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.
Also available in: French
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.