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.”
Does governance matter?
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.
Recently I was asked
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.
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.
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.
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.
Just three months after the deadly Ebola Virus touched down in Nigeria, the country was pronounced “Ebola free” by the World Health Organization. In a country with a mobile population of more than 173 million, mixed progress in public health outcomes and challenges in government coordination and delivery, this is a remarkable case of delivery despite the odds, with international assistance playing an ‘arm’s length’ role and Nigerians taking the lead.
But it doesn’t always take a crisis to align the interests of politicians, institutions and the public like this. We recently attended the Overseas Development Institute’s ‘Driving change in challenging contexts’ event where participants presented several cases of how governments delivered despite the odds.
The civil society members of the Open Government Partnership (OGP) steering committee are proud to announce the inaugural OGP Government Champion Award!
. Even though the country has vibrant democracy and policy interventions like right to information act, citizens lack awareness and necessary toolkit for exercising their rights through social audit.
In late June, we sent two of our bravest colleagues, Marta and Marcelo, on a daring mission into the Tundra, close to the Arctic Circle. Even though the temperature was in the mid-80s (mid-20s Celsius), you could feel the glacial breezes. Since our unit focuses on Latin America and the Caribbean, you might wonder what brought them so far north.
The team had arrived in Toronto, Ontario with a mission: to learn more about shared corporate services (SCS) and their potential application to save costs and improve government efficiency in other parts of the world.
In the late 90s, reeling from a financial crisis, the provincial government of Ontario was faced with a daunting task: to cut a third of its administrative budget in one year. In other words, they had to do more with less. Over the next decade the government managed to save C$43 million in direct costs and C$227 million through efficiency gains. Their secret was an innovative solution borrowed from the private sector.
This is an important week: it marks both International Right to Know Week and the week of the United Nations’ summit for the adoption of the post-2015 development agenda.
At this meeting, The UN’s Sustainable Development Goals (SDGs) are expected to be adopted. Among these goals is Goal 16, Target 10 – to ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements.
Inclusion of this target recognizes that incredible progress has been made on the right to know--over one hundred countries worldwide already have made significant progress towards achieving this target and other countries are actively discussing the passage of access to information laws--and that there is still more work to be done.