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Law and Regulation

How much bang for how many bucks?

Jim Brumby's picture
Rubens Donizeti Valeriano - Panamericano de MTB XCO 2014 - Barbacena - MG - Brasil. Photo: Daniela Luna
Evidence-based rule-making for private sector development and service delivery

ANNOUNCEMENT OF THE GLOBAL RIA AWARD 2017


Any visitor to Armenia can testify that the country has delicious food. But diners need to be assured that the khorovats, dolma, or basturma on their plates will not make them sick. How can this be assured?

Some 65 percent of the 320,000 inhabitants of the Brazilian city of Rio Branco use bicycles as their primary mode of transportation, and the popularity of biking is increasing across the country. But Brazil’s 40,000 annual traffic related fatalities makes protective gear a necessity. What is appropriate protection?

Peer Pressure: Tax competition and developing economies

Michael Keen's picture
A race to the bottom. Graphic by Nicholas Nam/World Bank

Economists tend to agree on the importance of competition for a sound market economy. So what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much-needed public spending, or both.

All this has serious implications for developing countries because they are especially reliant on the corporate income tax for revenues. The risk that tax competition will pressure them into tax policies that endanger this key revenue source is therefore particularly worrisome.

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.

Toward next-generation performance budgeting

Donald Moynihan's picture
 Photo © Dominic Chavez/World Bank


Performance budgeting (PB) has a deep and enduring appeal. What government would not want to allocate resources in a way that fosters efficiency, effectiveness, transparency, and accountability? However, such aspirations have proven poor predictors of how performance data are actually used.

The potential benefits of identifying and tracking the goals of public spending are undeniable, but have often justified a default adoption of overly complex systems of questionable use. Faith in PB is sustained by a willingness to forget past negative experiences and assume that this time it will be different. Without a significant re-evaluation, PB’s history of disappointment seems likely also to be its future.

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.

Resolving disputes, avoiding litigation in India

Shanker Lal's picture
An overhaul of Dispute Boards looks to prevent delays in the creation of new infrastructure, such as the construction of roads and railways.
Photo: Simone D. McCourtie / World Bank

A significant percentage of government spending in India goes towards the creation of new infrastructure like the construction of roads, ports, railways and power plants. Construction contracts, however, often have a reputation for disputes and conflicts between contractors and governments. Such disputes ultimately delay implementation of the contracts and increase total costs, adversely impacting development outcomes of the projects.

Many countries have found that Dispute Boards offer an effective mechanism for resolving these issues in a timely and cost-effective manner. These boards, composed of one to three members, are set up upon commencement of a contract and help the involved parties avoid or overcome disagreements or disputes that arise during the contract’s implementation. The boards are less legalistic, less adversarial, less time consuming and less costly than options for resolving disputes within the legal system, including arbitration and litigation.

A 2004 study (PDF) shows that Dispute Boards have been successful in resolving even the most strenuous disputes with an almost 99% success rate. The savings in using these boards are enormous: another study indicates that in almost 10% of projects, between 8% and 10% of the total project cost was legal cost.

Imminent! Transformation of the World Bank’s Procurement Framework

Robert Hunja's picture
World Bank. Photo © Dominic Chavez/World Bank

In keeping with recent global trends in the procurement arena, the World Bank is transforming and modernizing its procurement framework. 

In the private sector, companies have long viewed maximizing of supply chains as key to healthier bottom lines.  In the public sector, many governments have been moving from overly rule-based procurement systems to systems that focus on performance and achievement of development goals. 

Empowering farming communities to manage biodiversity in Nepal

M. Ann Tutwiler's picture
 Also available in Spanish
Surya and Saraswati Adhikari on their biodiverse farm, Nepal.
Photo credit: Bioversity International/J. Zucker
The Himalayan mountain village of Begnas sits in a valley rich in agricultural biodiversity. Altitudes range from 600 to 1,400 metres above sea level, with the landscape home to a combination of wetlands, forests, rice terraces and grazing areas. There are two freshwater lakes, Lake Rupa and Lake Begnas, which provide irrigation, important habitats for wildlife and support small-scale fish-farming activities.


I recently visited one of Bioversity International’s project sites in Begnas, where I met farming couple, Surya and Saraswati Adhikari. They proudly showed me around their biodiverse farm, pointing out some of the 150 plant species they grow and explaining that each one has a specific use. They showed me the vegetables, rice, gourds and legumes they grow to eat and sell; the trees that provide fruits, fodder and fuel, and the many herbs for medicinal and cultural purposes.

These three countries significantly increased women parliamentarians

Ravi Kumar's picture

Many countries around the world are working to improve women representation in the government.

If you look at the data from the last 25 years to see which countries made significant progress to increase proportion of seats held by women in their national parliaments, these three countries will stand out!
 
Rwanda, Bolivia and South Africa! See the chart below. 



On this International Women’s Day, let’s quickly look at how these countries increased the proportion of women in parliaments.

Rwanda:
 
In 1990, only 17% of Rwanda’s parliament was held by women, according to the Inter-Parliamentary Union. Today, 25 years later, 64% of parliament is occupied by women.

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.

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