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Closing thoughts on the "Harnessing Digital Trade for Competitiveness and Development" conference

Rosanna Chan's picture

Fiber optic light bokeh. Source - x_tineDigital entrepreneurs have the potential to connect to global markets like never before. Whether selling physical goods on internet platforms, or providing digital goods and services that can be downloaded and streamed, an entirely new ecosystem of innovative micro and small businesses has emerged in the developing world.
 
The World Bank Group hosted some of the pioneers in this space for a full-day conference on Harnessing Digital Trade for Competitiveness and Development on May 19. Here, we heard entrepreneurial success stories—an online platform for jewelry in Kenya, a provider of software solutions in Nepal, an online platform for livestock trade in Serbia—and dove into the constraints and challenges of running a digital business in an emerging economy.
 
The scope of these challenges made these success stories, and the broader potential they represent, even more inspiring. From internet connectivity to logistics, from financial payments to trade regulations, from bankruptcy laws to entrepreneurial and consumer digital literacy-- clearly, more needs to be done to fully harness the potential of digital trade for competitiveness and development and to foster an enabling environment to digital trade.

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

Why Governments Target Civil Society and What Can Be Done in Response
CSIS
Chief among the current challenges facing the global human rights community (and broader civil society) is a contagion growing in intensity and described best—if inelegantly—as the closing space around civil society. Drawing on a literature review and on discussions with activists from around the world, this report identifies five causal factors affecting closing space—in some cases hastening it, in other cases, helping to keep it at bay—that merit extensive, systematic inquiry. These various lines of inquiry provide a rich, new agenda that if addressed can help generate remedies to improve the conditions under which citizens organize in support of human rights.

What’s gone wrong with democracy?
The Economist
Democracy was the most successful political idea of the 20th century. Why has it run into trouble, and what can be done to revive it?  The  protesters who have overturned the politics of Ukraine have many aspirations for their country. Their placards called for closer relations with the European Union (EU), an end to Russian intervention in Ukraine’s politics and the establishment of a clean government to replace the kleptocracy of President Viktor Yanukovych. But their fundamental demand is one that has motivated people over many decades to take a stand against corrupt, abusive and autocratic governments. They want a rules-based democracy.  It is easy to understand why.

Justice in Kenya: measuring what counts

Nicholas Menzies's picture
Chief Justice Willy Mutunga and Chief Registrar of the Judiciary Anne Amadi sign the Understandings after the launch of the Performance Management and Measurement report in Nairobi, Kenya.


“You cannot solve a problem you haven’t fully understood.” – Chief Justice Mutunga, April 15, 2015
 
It’s difficult to know whether you’re succeeding in any institution – public or private – if you don’t set targets and collect data to measure progress against them. Courts are no different.
 
The Kenyan Judiciary has been making great strides in performance management. A ceremony at the Supreme Court in Nairobi last month was the latest step. Chief Justice Willy Mutunga signed “Performance Measurement and Monitoring Understandings” with the heads of Kenya’s courts.

These commit each court to targets such as hearing a case within 360 days, delivering judgments within 60 days of the end of a trial, and delivering a minimum number of 20 rulings a month. 

Financing for Development: World Bank's role in supporting tax and revenue mobilization reforms is critical

Rajul Awasthi's picture

Melissa Thomas, author of Govern like us, speaking at the World Bank recently raised a very interesting question: is our expectation that poor countries with limited resources can deliver high-quality governance unrealistic?

Can these countries provide the public goods and services that citizens demand and need, to be able to forge a strong social contract?

She compares the levels of revenue per capita in rich and poor countries and finds that in the poorest countries, levels of revenue per capita are so low that it would be years, or even decades, until they have enough to provide a decent level of public goods and services.

It is in that context that I thought of Sri Mulyani’s appeal during the Spring Meetings when she spoke of the need to clamp down on tax evasion and avoidance and boost the domestic resource mobilization (DRM) capacities of developing countries as a means of finding resources for financing development going forward.

From Ronaldo and Buffon to teamwork: what finance ministries can learn from the beautiful game

Mario Marcel's picture
South Africa is steadily preparing for the 2010 Soccer World Cup while the enthusiasm at ground level builds. Photo: © John Hogg/World Bank

If you were a football (soccer) player, who would you be? Representatives of Ministries of Finance from 20 African countries were confronted with this question at a CABRI-sponsored conference in Johannesburg last April.

What if we disclosed everything?

Marcos Siqueira's picture
One day in 2012, when I was the head of a Public-Private Partnership (PPP) Unit in a subnational government in Brazil, I woke up at 7:00 am to my phone ringing. I was surprised to see that it was the State Governor calling me – not his assistant but him, personally. He was not happy and had a very direct question: Why are today’s newspapers saying that one of our most successful PPP projects is failing to meet quality standards?
 
Image: www.e-builder.net

The day before I received the Governor’s phone call, I had ordered disclosure of full performance reports for all PPP projects on our website. This was the first time that any government had done that in Brazil. The particular project that the Governor had mentioned was a toll road that scored 83 percent in the previous trimester[1]. This was a fantastic score from a technical perspective. Besides, the performance indicators that we used were created to maintain incentives for improvement over the life of the contract. It was never meant for the private party to score 100 percent. Unfortunately, the news reporter did not understand this and didn’t invest time to ask – so I received the governor’s call. At that moment I knew I had a very strong case to make.

From my experience of more than eight years managing transactions and capacity building programs in Latin America and Africa, a radical approach to transparency is the key to enable PPPs to deliver more and better infrastructure services. In other words, I am fully convinced that opacity is the shortest route PPP projects can take towards the expensive failures mentioned by Laurence in his inaugural blog post.

The crude truth is that opaque PPP policies serve a lot of interests, but almost none of them benefit service users or taxpayers.  Here are some of the key points on transparency in PPPs, from my perspective:

Structured dialogue, value chain and competitiveness: A journey through implementation, from Copenhagen to Kabul

Steve Utterwulghe's picture



Afghanistan. Photo by Steve Utterwulghe.

This latest blog post should start with a mea culpa. Indeed, my 2015 work plan for public-private dialogue (PPD) did start in Dushanbe, Tajikistan, not Copenhagen. However, who can swear that he never tweaked a title a tiny bit to make it catchier?
 
While Dushanbe hosted the very productive First Regional PPD Forum in the “stans,” the 8th Global PPD Workshop took place in March in the Danish capital. There, “more than 300 representatives from governments, private enterprises, PPD coordination units, investors’ councils, competitiveness partnerships, civil society, business organizations, and various development partners participated in the event. They represented 54 countries and a total of 40 PPD initiatives who joined the event to share their experiences and discuss lessons learned.”
 
High-powered individuals kick-started the Copenhagen event, including HRH Crown Princess Mary of Denmark, who reiterated that, to make a difference in the world, “it will take partnerships across countries, governments, and between public and private sectors.”
 
Once the keynote speeches had been delivered, the real work began among the delegates and with the PPD experts. I jumped from impromptu coffee break to coffee break and strategized with the Côte d’Ivoire delegation on how to prepare for the National Day of Partnership/Dialogue in Abidjan; discussed ways to better involve the private sector in Morocco; debriefed with the Guinea Minister of Industry, SMEs and Private Sector Promotion on how the PPD structure that we helped put in place is strengthening the local value chain for extractive industries (see below); and moderated an engaging session on public-private dialogue in fragile states and conflict-affected countries (FCS), which provided great insights as I prepared to fly out on PPD missions to Somalia and Afghanistan.
 
Aside from the buzz of international gatherings, what really matters for the delegates, from both governments and the private sector, is to get inspired and bring back home ideas that can be adapted locally and successfully implemented. Public-private dialogue is an art defined by some fundamental core principles that can be adjusted according to specific needs and environments.
 
As a reminder, PPD refers to the structured interaction between the public and private sectors to promote the right conditions for private sector development. Its ultimate function is to contribute to a prosperous economy by expanding market opportunities and enabling private initiative. This is also very much the mission of the new World Bank Group Global Practice on Trade & Competitiveness (T&C). Its Senior Director, Anabel Gonzales, wrote in one of her blog posts on Trade and Development in Africa that fostering competitiveness and strengthening supply chains is a key to development and an integral part of T&C’s offering.
 
As I reflected on the links between structured multi-stakeholder dialogue, competitiveness and supply chains, I remembered a Harvard Business Review article written by Michael Porter and Mark Kramer, entitled Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility.
 
What particularly caught my attention at the time was the theory on interdependence between companies and society that the Harvard professors put forward. They argued that this interdependence takes two forms: the social impact that a company’s activities has on society, or “inside-out linkages,” and the social influences on the company’s competitiveness, or “outside-in linkages.”
 

Pushing the frontier of e-government procurement in Africa with the open contracting standard

Lindsey Marchessault's picture

Public procurement is a linchpin for good governance and effective public service delivery, both of which are critical to the sustainable development of Africa. In many countries throughout the region, strengthening procurement to address weaknesses in public sector governance has become a priority. 
 

Accountability inside out & outside in

Rosemary McGee's picture

 Zackary Canepari / Panos​In our eagerness to be constructive, we who work for accountable governance from our comfort zones in the global north sometimes forget what it’s like to live with a deeply unaccountable state.  I don’t just mean finding that the party we voted for has since done a U-turn on a pre-election policy promise (a sensitive issue in the UK this week as the hotly contested general elections loom). I mean being a citizen within a state that has a history of torturing and massacring its citizens.  For instance, how does it sound to a Guatemalan indigenous community when an international agency urges it to hold its state to account through ‘constructive engagement’?

At IDS on 30 April, Making All Voices Count’s Research, Evidence and Learning component hosted the third workshop in a series focused on accountability, organised jointly with the Transparency & Accountability Initiative and the World Bank’s Global Partnership for Social Accountability. We chose as a theme The Quest for citizen-led accountability: Looking inside the state.  Libraries overflowing with literature on the state and its institutions haven’t proven very useable for social actors who see the state within an ‘accountability politics’ frame[1], and come at it in campaigning mode.  This event brought together some of the scholars who’ve written that literature with some of those social actors who lead and support those rights-claiming processes, to unpack the state in ways that might help citizen-led accountability struggles gain purchase.

Sharing the most politically nuanced analysis of accountability that has ever been developed under World Bank auspices, Anu Joshi (IDS) and Helene Grandvoinnet (Lead Social Development Specialist, World Bank) offered a series of reflections, insights and devices for digging down inside of “context” so as to understand what makes state actors tick.  Their work points to what can be learnt by applying to state actors – individual and collective – what we already know about citizen actors – individual and collective.  Among these are the notion that power relations are at work not only between citizens and the state, but between one state actor and another; and that for governance to become more responsive and accountable, state officials may need to be empowered or mobilized at least as much as they need to be informed.  Here was ‘the state’ viewed on the inside, and from the inside looking out.
 

Rousseau isn’t the first, nor last, to negotiate a ‘social contract’

Mehrunisa Qayyum's picture
Webcast Replay



“50% of Arab world citizens are dissatisfied with public services in their area,” according to a World Bank survey — which prompted not one, but two sessions at the World Bank Group-International Monetary Fund Spring Meetings. So it was no coincidence that the meme #BreaktheCycle emerged in another Middle East and North Africa (MENA) panel, “Creating Jobs and Improving Services: A New Social Contract in the Arab World,” which also revisited the theme of the social contract in both oil-importing and exporting countries.


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