Over the last 20 years, economic growth has helped to lift almost a billion people out of extreme poverty. But 1 billion people are still extremely poor. 1.1 billion live without electricity and 2.5 billion people without access to sanitation. For them, growth has not been inclusive enough.
In addition, growth has come at the expense of the environment. While environmental degradation affects everyone, the poor are more vulnerable to violent weather, floods, and a changing climate.
Development experts, policymakers, and institutions like the World Bank have learned a major lesson: If we want to succeed in ending poverty, growth needs to be inclusive and sustainable.
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
I remember my first visit to the agency in 2007. The agency is heavily staffed (15,000), has more than 100 branches and its main headquarters had once almost fallen apart. In my first visit, the head of the agency gave me a nice surprise: he showed me a land book that dated back to the 18th century, and included a record of my great-great-grandfather’s land title in Palestine.
The head of the agency had great plans to transform the agency by improving land records, introducing computerization and integrating the system into the overall e-government program, and setting a time limit of one day to register land transactions. Based on that an ambitious reform agenda, we worked together over a few months’ ‘time to prepare the cadastre modernization project. The Bank partly financed this reform through a $100 million loan, while the Turkish government funded the rest of the program. The project started in 2007, and I moved on to other positions later that year.
This time I had a second surprise. The institution is completely transformed. The main office has been completely and beautifully renovated. It now resembles any other government office in the US or Europe. The agency presented its achievements. It was amazing to see what had been accomplished in 8 years. The government is about to complete the renovation of the cadastre and the computerization of all land records, including historical records from Ottoman times. Service delivery has improved dramatically, with property transactions now being registered within 2 hours. They also integrated cadastre registration into the overall e-government program, which allows any Turkish citizen to access the record of their land/property online. Above all, customer satisfaction has reached 97% — something unheard of for land agencies, often known to be among the most corrupt agencies in many countries.
When it comes to engagement in the fight against corruption, developing country governments span a wide range. Some are willing to investigate and prosecute corruption; others are more reluctant.
Some can count on a well-organized and responsive civil service; others cannot. In short, from the perspective of intergovernmental organizations interested in combatting corruption, some governments are better partners than others.
For those states unable or unwilling to be strong allies in the fight against corruption in World Bank projects, efforts must be channeled through actors other than the government. And since corrupt transactions—like a tango (it takes two) —there is always an alternative actor to address: the private sector.
To respond to client demand at this crucial moment for economic development, the World Bank Group is generating knowledge to better understand the links among competition, growth and shared prosperity, and to develop policies that promote competition. Last week, at a Bank Group event, held jointly with the Organization for Economic Cooperation and Development (OECD), experts and practitioners discussed the growing body of empirical evidence on these matters. Representatives from the WBG’s client countries, in turn, shared how WBG competition policy tools are leveraging their development impact.
Competition in the marketplace matters for economic growth and household welfare for two reasons:
- First, it fosters more productive firms and industries, allowing domestic firms to become more competitive abroad and to export more. A WBG study shows that substantially increasing competition in Tunisia would boost labor productivity growth by 5 percent.
- Second, it protects poorer households from paying too much for consumer goods, and from missing out on the benefits of trade liberalization. In Mexico, lack of competition costs the poorest households 20 percent more than richest households. In Kenya, poverty could fall by 2 percent if competition was more intense in the maize and sugar markets.
Competition is restricted by businesses practices that undermine competitive dynamics. When firms agree to fix prices, empirical evidence reveals that consumers pay on average 49 percent more, and 80 percent more when cartels are strongest. Developing economies are still frequently marked by regulations that restrict the number of firms or limit private investment; rules that increase business risks and facilitate agreements among competitors; and rules that discriminate against certain competitors or affect competitive neutrality. When new retail firms are allowed to enter the market, real household income increases by 6.2 percent.
Each month People, Spaces, Deliberation shares the blog post that generated the most interest and discussion. For June 2015, the featured blog post is "5 things you should know about governance as a proposed sustainable development goal" by Vinay Bhargava, the chief technical adviser and a board member at Partnership for Transparency Fund.
On May 27, I had the pleasure of serving as a panelist at an event organized by the Governance Thematic Group of 1818 Society of the World Bank Group (WBG) Alumni.
The panelists were: Mr. Homi Kharas, Senior Fellow and Deputy Director for the Global Economy and Development program at the Brookings Institution; Ms. Heike Gramckow, Acting Practice Manager, Rule of Law and Access to Justice at the Governance Global Practice at the World Bank Group; Mr. Brian Levy, Professor of the Practice, School of Advanced International Studies (SAIS), Johns Hopkins University; Mr. Jerome Sauvage, Deputy head of UN Office in Washington DC. Mr. Fredrick Temple, currently Adviser at the Partnership for Transparency Fund, moderated the workshop.
The panel presentations and discussion were hugely informative and insightful. I am pleased to share with you my five takeaways that anyone interested in governance and development interactions ought to know.
. And that’s just a start.
The use of data and technology in procurement make it possible for governments to make informed decisions to maximize development impact. At the World Bank, the Public Integrity and Openness Practice is developing a set of Transformational Engagements, one of which focuses on Data Analytics, to catalyze better outcomes from procurement processes.
The engagement will use data analytics to solve pressing developmental problems. The plan is to combine work on addressing common data problems (how to digitize paper records, how to link different data records, how to present data findings in ways that are accessible and influential) with efforts at the country level. Powered by advanced data analysis, countries can undertake empirical-based examinations of when best value is achieved via procurement, or in which cases and sectors government contracting is promoting the development of competitive and dynamic private sectors.
Work undertaken within the Bank will be informed by the concurrent efforts of others who are exploring different approaches and different techniques to using data and data analytics to drive improved performance. The World Bank seeks to play a constructive role within a community of initiatives to harness the power of information to change how governments function, the relationship between government and non-governmental actors, and the lives of people. Committed to an inclusive process of learning-by-doing, the World Bank is dedicated to building partnerships with researchers, government officials, the private sector, and civil society.
- The World Region
- Public Sector and Governance
- Private Sector Development
- Information and Communication Technologies
- Open Governance; Open Data; Public Finance Management; Public Procurement; Information and Communication Technology; Public Integrity and Openness Practice; Transformational Engagements; Data Analytics; Private Sector Development; Citizen Participation
A new phase of openness began five years ago on July 1, 2010, when the World Bank launched its Policy on Access to Information, which provides access to any information in the Bank’s possession that is not on a list of exceptions. The policy has served as a catalyst and has created an ecosystem of transparency initiatives to make World Bank information and data available to the public. In the years since 2010, the Bank has applied the principles underpinning Access to Information to accompanying initiatives such as Open Data, the Open Knowledge Repository, Open Finances, and Open Contracting, among others. The spectrum of transparency and innovation even extends beyond these initiatives to include the World Bank’s vision on Open Government.
Open approaches are paramount to development. But while access to information and technology are important to the development process, they are only part of the equation in finding solutions. A crucial part of the process lies with global citizens who can – and do – utilize the information and data to engage with and better their communities.
I recently spent three days in Hargeisa, Somaliland. An eye-opening experience, as much as one that strengthens my conviction that World Bank Group is doing the right thing by engaging in this fragile country.
Somaliland is business unusual. Imagine among others, sitting in a mandatory security brief and specifying your blood type straight off the plane, going to meetings in armored cars, wearing the hijab – a veil worn by Muslim women in the presence of adult males – scheduling meetings around prayers and the time of Iftar, the evening meal when Muslims end their daily fast during Ramadan.
The business environment in Somaliland is characterized by a fragile state, poor public service delivery, a weak legal and regulatory regime, inefficient and costly trade logistics, and a fragmented private sector with limited structured engagement with the government. Although the private sector accounts for more than 90 percent of GDP (an anomaly in Africa), it has poor access to finance and lacks an organized voice.
Meeting with the President of the Republic of Somaliland.
During my mission, I met with key Ministers, entrepreneurs and development partners and discussed the challenges and opportunities linked to the ongoing economic development agenda, notably the development of infrastructure and the energy sector. The exchanges highlighted how the World Bank Group's program in Somaliland is laying a foundation to create job opportunities and to accelerate the pace of economic development by fostering business reforms and SME engagement. In this light, the set-up of a high-level taskforce – reporting directly to the President – to implement Doing Business reforms compiled in a Doing Business memo, is a milestone and a strong sign of client buy-in. That is always crucial for the World Bank Group's programs to reach their objectives.
Last, I participated in the presentation of the pilot Reform Champion Program, which aims to develop the capacity of government officials and some representatives of the private sector to implement key reforms that will address constraints to economic growth and development. The project is expected to help trained reform champions implement at least five reforms to improve government-to-business services by July 2016.
In May 2015, I was a panel speaker at the 2nd World Bank – International Ombudsman Institute Roundtable on the role of ombudsman institutions (OIs) in promoting citizen-centric governance and inclusive institutions. This was a great opportunity to share the experience of my office, the Ombudsman Republic of Indonesia (ORI) in promoting greater government accountability and also learn from other countries’ experiences presented by the other panelists.
The OIs come in various shapes and sizes, thus encompassing different roles depending upon their national mandates. While OIs are mostly known to deal with complaints regarding maladministration issues not addressed at the agency level, our panel discussed how OIs could contribute to service delivery improvements, while also promoting citizen engagement in demanding accountability.
As fellow Ombudsman Peter Tyndall from Ireland noted, OIs are capable of not only looking into individual complaints regarding poor service delivery often caused by one-off incidences, but also investigate and uncover roots of more systemic problems within public institutions.