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Governance

A little handbook that could help bring big results – in revenues and investor certainty

Jan Loeprick's picture
Graphic: Boris Balabanov

In today’s globalized world, a corporation might have a retail store in one country, a factory in another, and financial services provider in yet a third.

Corporate interconnectedness has brought investment and growth, to be sure, but it has also added complexity to the work of tax authorities. Increasingly, developing-economy governments come face-to-face with corporations that employ sophisticated strategies with the aim of paying fewer taxes. With our recently published handbook, "Transfer Pricing and Developing Economies: A Handbook for Policy Makers and Practitioners,” we hope to support efforts to protect countries’ corporate tax bases.

Understanding bureaucracy

Zahid Hasnain's picture
Photo: © Gennadiy Ratushenko / World Bank

State capacity is clearly fundamental to development, and the motivation and productivity of the personnel working in the state is clearly fundamental to state capacity.

Government bureaucracies typically employ 15 to 30 percent of all workers, and 50 to 60 percent of formal sector or salaried workers in developing countries. This fact alone warrants a detailed understanding of the functioning of public sector labor markets and their influence on the broader labor market, particularly as the characteristics of public sector workers—their gender, age, and skills profiles, for instance—can be quite different from their private sector counterparts.

But more importantly, the motivation of government workers and thereby the productivity of government bureaucracies impacts almost everything else in an economy, from business regulations, to infrastructure provision, to the delivery of services.

Weekly wire: The global forum

Darejani Markozashvili's picture
These are some of the views and reports relevant to our readers that caught our attention this week.
 

Global Internet Report 2016
Internet Society
Today we are at a defining moment in the evolution and growth of the Internet. Large-scale data breaches, uncertainties about the use of our data, cybercrime, surveillance and other online threats are eroding users’ trust and affecting how they use the Internet.  Eroding trust is also affecting the way governments view the Internet, and, is shaping the policy environment for the Internet around the world. The 2016 Global Internet Report takes a close look at data breaches through an economic lens and provides five clear recommendations for a path forward.

What Does “Governance” Mean?
Governance Journal
The normative goals of governance reform are twofold: more effective public policies, and procedures that are legitimate and accountable to the citizenry. Often the phrase “good governance” is intertwined with the anticorruption agenda. Drawing on the author's experience as a visiting researcher at the World Bank and as a scholar of both corruption and comparative politics, this essay unpacks the concept of governance and relates it to debates over ways to balance technical expertise and public participation to achieve better functioning governments.

Imagining infrastructure services in 2017

Laurence Carter's picture
Video: #IMAGINE a better future for all children | UNICEF


One of my favorite songs when I was growing up was John Lennon’s “Imagine.” A few months ago, UNICEF created a project around it to highlight the plight of millions of refugee children. As 2016 drew to a close, I couldn’t help but imagine a world with high-quality, affordable, sustainable, well-maintained infrastructure services for everyone.

I’m not sure a video of infrastructure projects set to “Imagine” would fire people up as much as the UNICEF video does. But there is value in reflecting on what we have accomplished in 2016, and what we might hope for and imagine in 2017, to bring this vision closer to reality for millions of people.

Making local voices count: How Senegal and Tunisia inspire each other on governance reform

Salim Rouhana's picture

Also available in: Español

Photo: Mo Ibrahim Foundation / Flickr Creative Commons

Six years ago, a revolution started in Tunisia with an unemployed young Tunisian in a secondary city desperate to make his voice heard. This revolution reshaped the country’s development agenda and triggered a decentralization process to give more say to local governments in policymaking. Since then, the World Bank’s work on local governance in Tunisia has expanded from equipping municipalities with basic services into tackling the diverse challenges of decentralization: institutional reform, participatory processes, transparency and accountability, capacity building, and performance assessment.

Value for money: Costing Open Government reforms

Daniel Nogueira-Budny's picture



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.  

How can Hong Kong stay smart and competitive? By driving change through a 'Public-Private-People Partnership' approach

Dr. Winnie Tang's picture

According to the World Economic Forum’s “Global Competitiveness Report 2016-2017,” Hong Kong dropped two notches to rank as No. 9 in its Global Competitiveness Index. The decline occurred mainly because the city faces challenges to “evolve from one of the world’s foremost financial hubs to become an innovative powerhouse.”

One might argue this is an unfounded worry: After all, as a developed economy with a GDP per capita of US $42,000, Hong Kong has recorded an impressive GDP growth rate, over the last five years, of about 3 percent annually. This growth rate is higher than many developed economy.

However, if we look at the economic figures more closely, some worrisome early warning signs are already emerging – especially in terms of the factors that will drive Hong Kong’s future economic growth.

Apart from finance and insurance, the majority of Hong Kong’s GDP growth nowadays is contributed by “non-tradable” sectors that have less knowledge and innovation content, such as the construction and public-administration sectors.

According to the World Bank’s latest research on “Competitive Cities for Jobs and Growth,” long-term economic success and job growth in cities are usually driven by “tradable” sectors – economic sectors whose output could be traded and competed internationally. Firms in tradable sectors are exposed to fierce competition which, in turn, exerts pressure on them to invest in research and knowledge-intensive sectors so that they become more productive and innovative in order to remain competitive internationally. Hong Kong is now lagging behind its Asian and world peers in the critical features of knowledge and innovation.

Although the urgency to act to increase the knowledge-driven content of the economy is obvious, there seems to be a limited number of actions taking place here on the ground in Hong Kong.  How can Hong Kong forge ahead and start making changes?



Staying competitive in today’s global economy is like sailing against the current: Either you keep forging ahead, or you will fall behind.


The World Bank’s Smart Cities Conference – held in Yokohama, Japan last month – presented some good examples from around the world on how to use a bottom-up approach with active citizen engagement to increase the chance of success in implementing changes. The audience was interested in learning about the successful transformation of Yokohama through the cities many initiatives, such as the development of the Minato Mirai 21 central business district.

Ushering in a new era for jobs and economic transformation through IDA18

Thomas Farole's picture
With IDA18, new approaches to operations, new financial instruments, as well as new analytics and tools will help ensure we deliver on the jobs agenda. Photo: © John Hogg/World Bank

On December 14th and 15th donor and borrower country representatives of the World Bank Group will meet in Yogyakarta, Indonesia to finalize details for the 18th replenishment of IDA. The final agreement on IDA18 is expected to usher in a new era for IDA, the Bank’s fund for the poorest, dramatically increasing the level of financing and the potential for impact on development for the world’s poorest countries.
 
Central to the discussions on IDA over the past year has been the issue of jobs – how to deliver more jobs to meet the demands of a growing youth population; how best to improve job quality, particularly for the vast majority of workers in IDA countries who struggle in subsistence-level self-employment and other forms of informal employment; and how to make jobs more inclusive to women, youth, and populations in remote and lagging regions.

Join Sri Lanka’s journey to end poverty and promote prosperity

Idah Z. Pswarayi-Riddihough's picture

A 90 day reflection of the new Country Director of the World Bank
Join Sri Lanka's journey to end poverty and promote prosperity

I take this opportunity to thank all the Sri Lankans that opened their minds and hearts to help me understand the country context and constraints. During my first 90 days in Sri Lanka my colleagues and our clients gave me a warm welcome. I first met our core counterparts in the Government of Sri Lanka when I visited in July 2016. I have since travelled outside of Colombo several times, and I have met with many of our clients, development partners and stakeholders.  I have also had the privilege to meet with our friends from the media, civil society groups, academia and private sector to better understand the current operating environment and discuss solutions to issues of common interest.

Cricket in Sri Lanka is followed with so much passion and enthusiasm. This thrilled me as it is the same in my home country, Zimbabwe. Many things about Sri Lanka and its people and culture bring back fond memories from home.  Sri Lanka to me now is a second home so I am often torn with who to support when Sri Lanka plays Zimbabwe.  It’s even harder to know how to react when Sri Lanka beat Zimbabwe recently.

I recently read an article by Kumar Sangakkara on the Spirit of Cricket.  What an apt article.  It just demonstrated so much what one can do when they find a common thread that they are all passionate about.  Sri Lanka has many lessons to teach and to learn from the game of cricket.

I join my view into that of the article, that all Sri Lankans will need to work together regardless of location, gender, ethnicity, religion, political affiliation and social status. The focus should be on Sri Lanka’s priorities for development and how the Sri Lankan people can work together to win the match of ending poverty and sharing prosperity.

The “human scale” in public urban areas

Judy Zheng Jia's picture

Slideshow: Reimagining a park, a river, and other public spaces in Seoul (Photos by Judy Zheng Jia / World Bank)

"If you lose the human scale, the city becomes an ugly place," said Joan Clos, Executive Director of the UN-HABITAT at the Habitat III Conference last month. But more than being "ugly," the lack of good public urban spaces, such as open spaces, parks, and public buildings, often contribute to low livability in many of the world's congested and polluted cities. In fact, the importance of the issue received recognition in SDG 11, Target 7, which calls for the provision of “universal access to safe, inclusive and accessible, green, and public spaces, in particular for women and children, older persons, and persons with disabilities,” by 2030.
 
Global experience shows that disconnected, underutilized areas in urban settings can, instead, be opened up to a variety of uses to allow for improved social inclusion, social mixing, civic participation, recreation, safety, and a sense of belonging, ultimately contributing to urban prosperity. Well-designed and well-managed public spaces also offer benefits to environmental sustainability, transport efficiency, and public health improvements, and can equally serve women, the disabled, and people of all ages.

The importance of good urban spaces was the topic of an international workshop—“Vitalizing Cities with Public Space”—held in Seoul on November 14-17, 2016 and co-hosted by the Korea Research Institute of Human Settlements and the World Bank’s Urbanscapes Group. Eight cities from around the world—Seoul, Singapore, Buenos Aires, Chongqing, Kakamega, Zanzibar, Astana, and Tashkent—participated to discuss challenges and opportunities for better urban planning and design.

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