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Governance

What can governments do to bridge the gap between producers and users of budget information

Paolo de Renzio's picture
Entering data. Photo: World Bank

In the fiscal transparency arena, people often hear two conflicting claims. First, governments complain that few people take advantage of fiscal information that they make publicly available. Many countries - including fragile and low-income countries such as Togo and Haiti – have been opening up their budgets to public scrutiny by making fiscal data available, often through web portals.
 
Increasing the supply of fiscal information, however, often does not translate to the adequate demand and usage required to bring some of the intended benefits of transparency such as increased citizen engagement, and accountability. Providing a comprehensive budget dataset to the public does not guarantee that citizens, Civil Society Organizations (CSOs) and the media will start digging through the numbers.

What type of bureaucrat are you?

Daniel Rogger's picture
Editor's note: This blog post is part of a series for the 'Bureaucracy Lab', a World Bank initiative to better understand the world's public officials.
 
Bureaucracy Board Game Playing Cards, Avalon Hill


In the world of public sector bureaucracy, what type of bureaucrat are you? 
 
In the board game 'Bureaucracy', you must assume the role of the ‘Lifer’, the ‘Over Achiever’, the ‘Empire Builder’, or the ‘Hustler’.  Each character must use different tactics associated with their personality to rise up the ranks of the bureaucracy to achieve the position of director.  For example, by amassing contacts, the Hustler can attempt a 'power play' on players above her in the hierarchy. 

To promote peace and development, let’s talk about government spending on security and criminal justice

Ede Ijjasz-Vasquez's picture
Governments spend a lot of money to contain violence. In 2015, some $1.7 trillion was spent on defense by governments worldwide . While the primary responsibility for the provision of security and justice services lies with governments, those functions may carry a heavy fiscal burden as they often make up significant portions of national budgets. Yet little work has been undertaken on the composition of security sector budgets, or on the processes by which they are planned and managed.

In an effort to address this issue, the World Bank Group and the United Nations embarked on a three-year partnership that led to the publication of a new report titled Securing Development: Public Finance and the Security Sector. It is a sourcebook providing guidance to governments and development practitioners on how to use a tool called “Public Expenditure Review (PER)” adapted to examine the financing of security and criminal justice institutions.


 

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:

How can Social Accountability address fragility and help societies rebuild?

Jeff Thindwa's picture
Students in a war torn classroom. Photo: Alex Baluyut / World Bank

By 2030, almost half of the world’s poor will be concentrated in countries affected by fragility, conflict and violence.  It’s easy to associate these problems with only poorer countries, but in fact they affect a broader range of countries, and yes, middle income countries too. And, increasingly, they cross borders. Beyond the threats of terrorism, conflict and violence, poor public services and economic livelihoods have led to mass migration and forced displacement, trapping growing numbers of innocent people in vicious cycles of deprivation.

Consider how the Syrian refugee situation has spilled over beyond the Middle East, and the current famine in South Sudan, which is impacting approximately 100,000 people, with millions of lives at risk in the region if we do not act quickly and decisively.

Bank supports launch of certificate course on contractual dispute resolution in India

Shanker Lal's picture
Powerlines in Mumbai. Photo: Simone D. McCourtie / World Bank


India is the fastest-growing major economy in the world with significant Government investments in infrastructure. According to estimates by WTO and OECD, as quoted in a report from the United Nations Office on Drugs and Crime, India: Probity in Public Procurement, the estimated public procurement in India is between 20 and 30 percent of GDP. 

This translates to Indian government agencies issuing contracts worth an estimated US$ 419 billion to US$ 628 billion each year for various aspects of infrastructure projects. Ideally, in contractual agreements no disputes would arise and both sides would benefit from the outcome. However, unexpected events occur and many contracts end in dispute. Contractual legal disputes devoid project benefits to the public as time and resources are spent in expensive arbitration and litigation. As a result, India’s development goals are impacted.

E-bureaucracy: Can digital technologies spur public administration reform?

Zahid Hasnain's picture

Editor's note: This blog post is part of a series for the 'Bureaucracy Lab', a World Bank initiative to better understand the world's public officials.

Photo: Arne Hoel / World Bank


“By introducing an automated customer management system we took a noose and put it around our own necks. We are now accountable!”

This reflection from a manager in the Nairobi Public Water and Sewerage utility succinctly captures the impact of MajiVoice, a digital system that logs customer complaints, enables managers to assign the issue to a specific worker, track its resolution, and report back to the customer via an SMS. As a result, complaint resolution rates have doubled, and the time taken to resolve complaints has dropped by 90 percent.

MajiVoice shows that digital technologies can dramatically improve public sector capacity and accountability in otherwise weak governance environments. But is this example replicable? Can the increasingly cheap and ubiquitous digital technologies—there are now 4.7 billion mobile phone users in the world—move the needle on governance and make bureaucrats more accountable?

How to manage revenues from extractives? There’s a book for that!

Rolando Ossowski's picture
 
Offshore oil and rig platform. Photo: © curraheeshutter / Shutterstock.


Countries with large nonrenewable resources can benefit significantly from them, but reliance on revenues from these sources poses major challenges for policy makers. If you are a senior ministry of finance official in a resource-rich country, what are the challenges that you would face and how can you strengthen the fiscal management of your country’s oil and mineral revenues? Consider some of the issues that you would likely encounter:

For many resource abundant countries, large and unpredictable fluctuations in fiscal revenues are a fact of life. Resource revenues are highly volatile and subject to uncertainty. Fiscal policies will need to be framed to support macroeconomic stability and sustainable growth, while sensibly managing fiscal risks. Also, there is a question of how to decouple public spending (which should be relatively stable) from the short-run volatility of resource prices.

Innovative solutions for resource mobilization in Zambia

Srinivas Gurazada's picture
Industrial area in the city of Kitwe, Zambia - located in the copper belt. Photo: Arne Hoel

What would you expect in a mineral rich developing country? High Government revenues from the mineral resources? Not always, and definitely not in the case of Zambia - until recently.

Zambia has a considerable wealth of mineral resources and its economy depends heavily on these minerals. Zambia's primary export, copper and copper-related products, account for as much as 77% of the country's exports.

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.

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