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Public Sector and Governance

Better understanding the costs of tax treaties: Some initial evidence from Ukraine

Oleksii Balabushko's picture
Also available in: Español | Français
Kiev, Ukraine. Creative commons copyright: Mariusz Kluzniak


As the world is increasingly interconnected, international taxation – traditionally more of a niche issue for tax lawyers – is receiving more and more attention in wider discussions on economic development: Double tax treaties, or agreements that two countries sign with one another to prevent multinational corporations or individuals from being taxed twice, have become more common, with more than 3,000 in effect today. And while they may contribute to investment, some have also become an instrument for aggressive tax planning.

No movie, no map, no money: Local road financing innovations in the Philippines

Kai Kaiser's picture
Access to paradise? Photo by authors.

GoPro videos have become ubiquitous among mountain bikers. The more adventurous the journey the better. Go viral on social media, and you have a winner. You might even get a payout from YouTube. But we want to discuss another way to make money. Money for local roads in the Philippines. We want to discuss a way that officials and citizens could make a GoPro-type movie, convert it into a digital map, and possibly receive a payout from the Department of Budget and Management under a new program called Kalsada.
 
It’s More Fun in The Philippines!
 
The Philippines is a tropical archipelago of over seven thousand islands, making for many jewel destinations. The country’s tourism slogan “It’s More Fun in the Philippines” tries to capture the spirit of a friendly, welcoming and fun-loving people which the adventurous tourist will experience. Palawan was recently voted as the planet’s best island destination by a top travel magazine. In search of fun, we tried to visit one of its towns, Port Barton, two years ago. But chronic infrastructure means that sometimes you are in for a rough ride. Confronted with bad roads, we were only able to actually make it to this idyllic destination many months later.

A wealth of opportunities: Public real estate management as a tool for good governance

Eguiar Lizundia's picture

Also available in Spanish

Public works in Sixth Avenue, zona 1, besides the National Palace, Guatemala City, Guatemala. Photo: Maria Fleischmann / World Bank


How much are the government buildings, lands and other publicly-owned real estate of your country worth?  According to recent publications, a lot. A 2013 IMF study estimated that non-financial assets are worth an average of 67 percent of the GDP of a selection of 32 countries.

More recently, a book by Dag Detter and Stefan Fölster underscored the incredible potential of improving public wealth management. According to their calculations, a one percent increase in returns to public assets worldwide (including real estate) would generate gains equal to roughly one percent of global GDP!  In the United States, a one percent increase in yields from federal assets would be equivalent to the revenue raised from a four percent tax increase. But why are governments sitting on so much unused wealth?  And what can they do to make better use of what they have?

Seeking to reap the fruits of smarter public real estate management, representatives from twenty countries from around the world met in Mexico last September. Participants discussed how to turn the management of public real estate assets into a tool for good governance, including strategies to optimize the use of government property and generate savings in maintenance. The conference was organized by The Workplace Network (TWN), an international public real estate management network, with participation of the World Bank and the Inter-American Development Bank.

How a professor started a campaign to fight everyday corruption in India

Alice Lloyd's picture
Also available in Spanish,  French and Arabic
Photo credit: 5th Pillar


An expatriate Indian physics professor, when traveling back home to India, found himself harassed by endless extortion demands. As a way to fight corruption by shaming the officials who ask for bribes, the professor created a fake currency bill: the zero-rupee note.

The notes are identical to Indian banknotes, but carry the slogan, "Eliminate corruption at all levels," and the pledge, "I promise to neither accept nor give bribe".

Vijay Anand, president of the non-governmental organization 5th Pillar, thought the idea could work on a larger scale. Initially, the NGO printed 25,000 zero-rupee notes and distributed them to students in the southern state of Tamil Nadu. Since 2007, the NGO has distributed more than one million bills in five languages, covering 600-plus institutions. Volunteers hand them out near places where officials often solicit bribes, such as railway stations and government hospitals. 

What are we talking about when we talk about “subnational” governments?

Arturo Herrera Gutierrez's picture
Municipality of Guatapé in Colombia. Photo - Adrienne Hathaway / World Bank
Municipality of Guatapé in Colombia. Photo - Adrienne Hathaway / World Bank


Over the last 25 years, the relevance of local governments (states, provinces, municipalities, etc.) in Latin America has been constantly increasing.

The process started with a wave of decentralization, particularly in the education and health sectors, followed by the increasing of other responsibilities of local governments (with the accompanying budget!), and most recently topped off by the allocation of additional investment resources fueled by the commodities boom of the mid-2000s. Currently, in some countries, half of the national budget is now allocated to lower levels of governments.

The World Bank has a long history supporting countries in the region as they transition political, administrative, and fiscal responsibilities to subnational levels, as part of national strategies for strengthening democracy, transparency, and efficient service delivery.