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, .
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.
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 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.
There are few better ways to reveal whether a government’s rhetoric matches reality than examining how it raises and spends public money. Are funds being spent on the things it said they would be? Are these investments achieving the outcomes that were intended? In short, are government budgets accountable?
The traditional model for how accountability functions is rather simple. "Horizontal accountability" describes the oversight exerted over the executive arm of government by independent state bodies such as parliaments and supreme audit institutions. "Vertical accountability" describes the influence citizens hold through the ballot box.
Between elections and outside of formal institutions, however, opportunities for influencing how governments manage public resources are limited. As a consequence, this simple vertical/horizontal model has proved increasingly inadequate for capturing how budget accountability works (or doesn’t) in the real world; this is especially true in developing countries, where democratic processes and formal oversight institutions can be somewhat fragile and ineffective.
This week, the World Bank, together with the International Monetary Fund, the Organisation for Co-Operation and Development, and the United Nations, submitted recommendations to the G20 on how we can best work to strengthen the capacity of our client countries to build fair, efficient tax systems. Responding to a request the G20 made in February, and working as the recently-formed Platform for Collaboration on Tax, we dug deep into our collective years of policy-setting, technical advice, and on-the-ground experience to arrive at guidance for providing assistance and suggestions for funding that work. In short, we looked at how best we could help.
The recommendations in our report, “Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries,” present an ambitious agenda for development partners to support developing nations to strengthen their tax systems and realize their development objectives, as well as strive for achievement of the Sustainable Development Goals.
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: GlobalTaxPlatform@worldbank.org
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.
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.
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.
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.
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.
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.