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Public Sector and Governance

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.

Citizen Engagement in Kenya: From law to practice

Tiago Carneiro Peixoto's picture
Citizens mapping projects at ward level in Makueni County
Citizens mapping projects at ward level in Makueni County


The introduction of “citizen engagement” into law is an idea that is gaining popularity around the world.

New provisions in Kenya’s recent Constitution enshrine openness, accountability and public participation as guiding principles for public financial management. Yet, as citizen engagement practitioners know, translating participation laws into meaningful action on the ground is no simple task. Experience has shown that in the absence of commitment from leaders and citizens and without appropriate capacities and methodologies, public participation provisions may lead to simple “tick the box” exercises.
 
Thanks to the support from the Kenya Participatory Budgeting Initiative (KPBI)* and the commitment from West Pokot and Makueni** County leaders, participatory budgeting (PB) is being tested as a way to achieve more inclusive and effective citizen engagement processes while complying with national legal provisions. The initial results are quite encouraging.

How Africa can restore robust growth through trade and aid

Nancy Lee's picture
 
Workers construct a culvert along the Nampula – Rio Ligonha Road in Northern Mozambique as part of the Millennium Challenge Corporation's Rehabilitation and Construction of Roads Project.
Photo credit: MCC

The narrative of "Africa Rising" has recently been tempered by uncertainties and risks in the global environment. Following two decades of growth averaging five percent, many of Africa’s economies, especially the commodity exporters, have cooled. Earlier this month, the International Monetary Fund cut its 2016 growth forecast for sub-Saharan Africa to only 1.4 percent.

Like Asia, Africa’s progress in reducing poverty rates has been driven by sustained growth, but population growth has prevented a decline in poverty. Extreme poverty is now increasingly concentrated in sub-Saharan Africa, and in 2012, nearly 400 million people in the region were living on less than $1.90 a day.

The Governance Gap: Can we bridge it?

Deborah Wetzel's picture
Graphic by Nicholas Nam/World Bank

If you’re like me, just watching TV or picking up the paper is a constant reminder of issues related to “governance,” and that’s not just because it’s also my job.
 
People are not happy with the state of their governments these days. Distrust is running high; fiscal pressures are mounting; service delivery doesn’t reach the poorest people; corruption scandals abound and conflict seems on the rise.
 
The World Bank’s latest country surveys that polled around 9,000 opinion leaders in 40 of our client countries says that public sector governance has risen to the top of countries’ policy priorities. The 2016 Edelman Trust Barometer shows that more than half of the global population expresses distrust in government institutions.

Five tools for capturing, manipulating, and visualizing data

Daniel Nogueira-Budny's picture
Data Literacy Bootcamp in Freetown, Sierra Leone. Photo: Usman Khaliq, iDT Labs


Increasing evidence suggests that, to improve accountability and promote evidence-based decision making, open access to data and data literacy skills are essential. While in-person educational opportunities can be limited in parts of the developing world, free educational tools are available online to boost data literacy skills.
 
In June 2016, Code for Africa, with support from the World Bank’s Open Government Global Solutions Group, held a Data Literacy Bootcamp in Freetown, Sierra Leone, for 55 participants, including journalists, civil society members, and private and public sector representatives. One of the Bootcamp’s primary objectives was to build data literacy skills to nurture the homegrown development of information and communication technologies (ICT) solutions to development problems.
 
Here are five tools Bootcamp participants employed to help capture, manipulate, and visualize data:

How can we better help governments to help citizens? Seeking feedback on best practices in building tax capacity

Jim Brumby's picture

In April, the World Bank Group joined forces with the International Monetary Fund (IMF), the Organisation for Co-Operation and Development (OECD), and the United Nations (UN) to form the Platform for Collaboration on Tax with the aim of providing better coordination and support to developing countries on tax matters. Among the responsibilities of this new group are to formalize regular discussions among our organizations on standards for international tax issues, strengthen our capacity-building support, deliver joint guidance, and share information on our ongoing work.
 
To that end, we have produced a short guidance note that we expect to present to the G20 in July: “Report on Effective Capacity Building on Tax Matters in Developing Countries”. In preparing this note, our experts have compiled research, reached into their extensive experience on the ground, and incorporated comments from country-level practitioners at a number of meetings – in Tanzania, South Korea, and Washington, D.C. – that were designed to highlight the developing-country perspective. But we know there is more to learn, and before we finalize this note, we would like to hear from you, whether you are a representative from a civil society organization, a tax official, or a citizen who is interested in how your government sets and collects taxes.
 
Deadline: July 8
Where to send feedback: [email protected]
Next steps: Keep your eye on this space. While we are setting a short deadline for this particular project, we hope to keep the conversation going, and will engage with you on many of the initiatives we have planned.

​6 things to know about the new World Bank Procurement Framework

Ravi Kumar's picture
Available in ArabicChinese. French and Spanish
School children in Lebanon. Photo © Dominic Chavez/World Bank

Students in public schools without textbooks at the start of the year. Health centers in villages without even the most basic medications. Oftentimes procurement is to blame.

An efficient procurement system isn't just a good idea, it's a necessary tool for all governments (local and national) to function properly and deliver public services.

Keeping pace with global trends, on July 1 the World Bank will roll out the new Procurement Framework for countries that procure goods and services under Bank-finance projects. The new framework will be implemented for all investment projects with a Project Concept Note on or after July 1, 2016.  Led by the Global Governance Practice (GGP) with support from Operations Policy and Country Services (OPCS), the framework is designed to increase flexibility, efficiency, and transparency of procurement process, to better meet the needs of client countries.

So, what will the World Bank's new Procurement Framework do?

Chasing shadows: Tax strategies to tackle the shadow economy

Rajul Awasthi's picture
Digital work by Steve Johnson

Tax administrations in developing countries are increasingly concerned about the persistent problem of loss of tax revenues to the shadow economy, and they often deploy a range of strategies to plug tax leaks and augment revenues. The erosion of the tax base prevents governments from collecting the revenue it needs to provide essential services, such as healthcare, road construction, and education. Nonetheless, it’s a sticky problem: how do you convince business owners to pay taxes?
 
Some possible answers, bolstered by evidence, include: simplify tax payment and provide incentives to formalize businesses. The World Bank’s Governance Global Practice will hold a conference between June 27-29 in St Petersburg, Russia, to bring together participants from almost 25 countries of the Europe and Central Asia region to discuss these issues under the aegis of the Tax Administrators eXchange of Global Innovative Practices, a peer-learning network of tax administrators. The event will be hosted by experts from the Public Sector Performance division of the practice.

Using country procurement systems in China and Vietnam to improve efficiency, transparency and competition

Ba Liu Nguyen's picture
Chongqing, China. Photo: Li Wenyong / World Bank

Procurement is an essential aspect of World Bank operations and international development projects worldwide. The World Bank’s policy on procurement encourages the use of country systems in procurement implementation process while ensuring the consistency with the Bank’s regulations . 

Making procurement information publicly available promotes openness and transparency and creates a level playing field for bidders. This, in turn, fosters competition and potentially decreases corruption risks. 

With this in mind, World Bank teams in East Asia and the Pacific successfully collaborated with government procurement agencies to increase and improve the publication of procurement information and to pilot e-procurement portals for Bank-funded operations. 

The following story shares our experiences and successes in both China and Vietnam. 

All’s fair in love and (the global tax) wars?

Jim Brumby's picture




The mishmash of overlapping and incoherent national tax policies and systems, which together comprise the global tax architecture, used to be a niche topic relegated to the fringes of global policy debates and the domain of a small number of technical experts. But the leak of the “Panama Papers” in April thrust these issues into the spotlight anew.

This added fuel to the fire that was started by the 2012 Amazon and Google cases and subsequent initial high-profile leaks that first brought international tax policy under public and legislative scrutiny. The technicalities of issues such as transfer pricing, offshore financial centers, aggressive tax planning and tax minimization, and illicit financial flows involving public officials have gained the attention of the media and taxpayers around the world.

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