How can governments ensure that they get their money’s worth when they embrace open government reforms?
Ongoing research suggests that open government reforms—those that promote transparency, participation, and accountability—may lead to better development outcomes if properly implemented by governments. However, governments must navigate the myriad of initiative options as they strive to improve citizens’ quality of life and achieve the ambitious Sustainable Development Goals (SDGs). Without a rough idea of the potential costs and benefits different reforms might offer, how can governments allocate their resources efficiently?
Multiple stakeholders are collaborating to answer this question. The Research Consortium on the Impact of Open Government commissioned a study to determine the financial costs associated with particular open government initiatives.
Photo credit: Dmitry Karyshev
Armenia was faced with a slowing economy, sinking remittances, and inefficient tax administration. At the same time, ordinary taxpayers had to navigate arduous processes when paying taxes. The Armenian government was eager to reform its tax administration. Below is a transcript of what we learned when we spoke to World Bank experts working with Armenian tax officials to make things better.
Julia: I’m Julia Oliver.
Maximilian: I’m Maximilian Mareis.
Julia: And we have been talking with tax experts around the World Bank to find out about what they do.
Maximilian: So, let’s start with this project in Armenia. Why did we get involved?
Julia: Well, the global financial crisis hit Armenia and its three million people pretty hard. In 2012, when the World Bank began working with policymakers to improve the country’s tax administration, the country faced a pretty bleak picture. Foreign remittances were low, and the domestic economy was slowing. In addition the country had high levels of informal employment.
How large is the share of public procurement to GDP in middle-income and low-income countries and how it is evolving? If sizable, can public procurement be used as a policy tool to make markets more competitive, and thus improve the quality of government services? Can it be used to induce innovation in firms? Can it also be a significant way to reduce corruption?