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Governance

Judith Tendler and learning from ‘good government’

Suvojit Chattopadhyay's picture

On 24th July 2016, Judith Tendler, former Professor at the Department of Urban studies and Planning at the Massachusetts Institute of Technology (MIT), Boston, passed away. She was 77. A Ph.D holder from Columbia University, Judith Tendler spent several years at the United States Agency for International Development (USAID) before a long career as a Professor in MIT. A significant share of Prof. Tendler’s work focused on the Americas, but she also studied South Asia and parts of Africa over her long career.

Prof Tendler’s book: ‘Good Government in the Tropics’ (1997) is one of the most influential books in the field of international development — an essential reading for students of governance and public policy studies. In the book, Prof Tendler and her research associates studied four cases of successful government in Ceara, a relatively poor state in north-eastern Brazil. In each of the cases, the government at different levels played an effective role, facilitating and brokering relationships, and submitting itself to mechanisms which could be used to hold themselves accountable. Those were rare, but rich, examples of ‘good government’.

These cases highlighting the achievements of ‘good governments’ challenged the dominant pessimistic thinking about governance in the so-called ‘third world’. Prof Tendler argued that much of the advice from international development agencies to developing countries was based on an analysis of poor performance of the public sector and governments. This resulted in a tendency to ‘import’ good practices from the successful developed countries, as well as a resistance to looking deeply into poor countries to identify variations in performance. In many ways Prof Tendler consistently challenged the pre-suppositions that development agencies and policy advisors nurtured and which, as a result, shaped the advice they dispensed into narrow straitjackets often unfit for the context in which they were to be applied.

Was the resource boom more akin to a resource curse for Africa?

Sudharshan Canagarajah's picture

The IMF’s Regional Economic Outlook (REO – April 2016) notes that the region’s dependence on primary commodities has increased since the 1980s with nearly half of the countries in the region subject to commodity price fluctuations. These economies, which contribute 70 percent of the GDP of Sub-Saharan Africa are facing a sharp slowdown in real growth, with many also having to undertake large fiscal retrenchments and/or seek balance of payments support from the IMF.

We review the economic performance of Sub-Saharan Africa’s (henceforth Africa) non-renewable resource producers since the early 2000s, the start of the commodity price boom contrasting this with the economic performance of Africa’s non-commodity exporters over the same period. The negative economic impact of the current slump in commodity prices is indisputable, but it is worth asking whether Africa’s non-renewable resource producers realized any tangible benefits from the commodity price boom. Our conclusion is that they did not, at least in terms of real per capita growth. And here’s why.

Why does half the world distrust government?

Dani Clark's picture

Governance Gap, World Bank Live.

According to the 2016 Edelman Trust Barometer, half the world population distrusts government. Understanding why and how governments can better serve their citizens was the central theme of the “Governance Gap” high-level public discussion at the World Bank-IMF Annual Meetings on Thursday.
 
“Governance is complex and complicated. We need to unpack it to understand those complexities better,” said Kyle Peters, interim chief operating officer and managing director of the World Bank at the start of the event, moderated by Clare Short, chair of the CITIES Alliance and former UK Secretary of State for International Development. 

The Governance Gap: Can we bridge it?

Deborah Wetzel's picture
Graphic by Nicholas Nam/World Bank

If you’re like me, just watching TV or picking up the paper is a constant reminder of issues related to “governance,” and that’s not just because it’s also my job.
 
People are not happy with the state of their governments these days. Distrust is running high; fiscal pressures are mounting; service delivery doesn’t reach the poorest people; corruption scandals abound and conflict seems on the rise.
 
The World Bank’s latest country surveys that polled around 9,000 opinion leaders in 40 of our client countries says that public sector governance has risen to the top of countries’ policy priorities. The 2016 Edelman Trust Barometer shows that more than half of the global population expresses distrust in government institutions.

5 priorities to boost Afghanistan’s development

Annette Dixon's picture
Photo credit: Rumi Consultancy / World Bank


Today I joined leaders and representatives from 70 countries and 20 international organizations and agencies at the Brussels Conference on Afghanistan. Together with its development partners, the World Bank Group pledged its continued support to the Afghan people and outlined a course of action to help all Afghans realize their dream of living in peace and prosperity.
 
Afghanistan has come a long way since 2001 and has made much progress under extremely challenging circumstances: life expectancy has increased from 44 to 60 years, maternal mortality has decreased by more than three quarters and, from almost none in 2001, the country now counts 18 million mobile phone subscribers.
 
Yet, enormous challenges remain as nearly 40 percent of Afghans live in poverty and almost 70 percent of the population is illiterate. This is made worse by growing insecurity and the return of 5.8 million refugees and 1.2 million internally displaced people. Much also remains to create jobs for the nearly 400,000 people entering the labor market each year.
 
To that end, here are five priorities we need to address to ensure a more prosperous and more secure future for all Afghans:

Court budgeting – ways to improve performance and do more with less

Georgia Harley's picture


The European Summer is over. We’ve traded our sunscreen for spreadsheets and it’s budget time. Across Europe, Ministries of Justice, Courts, and Judicial Councils are preparing their budget plans for the upcoming year. With fiscal constraint still the order of the day, staff in these offices are sharpening their scalpels, trying to figure out how to do more with less.

So in the spirit of sharing, here is a Top 10 list of how to improve court performance without spending more money.

Can the middle class really guarantee good governance?

Sina Odugbemi's picture
When social scientists and historians look back on the transformation in the quality of governance that took place in, first, Great Britain and, later, much of Europe in the course of the long 19th century, one explanatory factor often stands out: the rise of a large enough middle class.  What is large enough is, of course, a question of fact, and varies depending on the particular country context. This explanation is often contested, but it has stuck. People refer, for instance, to the revolts against monarchies that occurred across Europe around 1848 as the middle class revolutions. The sense that this explanation makes sense is so strong that when you attend seminars on improving governance in developing countries at some point or the other someone is bound to say: “Let’s be patient folks. Once these countries have a large enough middle class the pressure for improved governance will be unstoppable.”

I write about this now because I have just read an essay by Nancy Birdsall of the Center for Global Development that restates the view with some sophistication. Please see: “Middle –Class Heroes: The Best Guarantee of Good Governance.” The essay is worth reading in full. I am going to focus only on her core case. Key quote:
Having a large middle class is also critical for fostering good governance. Middle-class citizens want the stability and predictability that come from a political system that promotes fair competition, in which the very rich cannot rely on insider privileges to accumulate unearned wealth. Middle-class people are less vulnerable than the poor to pressure to pay into patronage networks and are more likely to support governments that protect private property and encourage private investment. When the middle class reaches a certain size – perhaps 30 percent of the population is enough – its members can start to identify with one another and to use their collective power to demand that the state spend their taxes to finance public services, security, and other critical public goods. Finally, members of a prospering middle class are unlikely to be drawn into the kinds of ethnic and religious rivalries that spur political instability. (Italics mine.)
 

Understand the differences, act on the commonalities in a globalized economy: How can Public-Private Dialogue be of help?

Steve Utterwulghe's picture



The Mongolian government’s economic advisors. Photo by Steve Utterwulghe


Misunderstanding, distrust, lack of genuine consultation. These are some of the words that I hear the most from various public and private stakeholders during my regular missions to developing countries.

From Bamako to Ulan Bator, where I am writing this post, the relentless echo of grievances points to the fact that the government doesn’t understand – or want to listen to – the private sector, and therefore doesn’t trust it. And likewise, the private sector sees public authorities as often incompetent, corrupt and an impediment to competitiveness and wealth creation.

While generalizing is a dubious exercise, the similarity and recurrence of complaints across the globe warrants deeper digging.

The issue of trust in policymaking is a complex field of study. The origin of mistrust of the private sector by the government in many developing countries is embedded in the socio-political culture and economic history of the state.
That being said, it is now rare to find a government that categorically denies the contribution of the private sector to the economic development of a nation. About 90 percent of the jobs are created by the private sector in the developing world, and about 50 percent of those are created by small and medium-sized enterprises (SMEs). Furthermore, as José Juan Ruiz from the Inter-American Development Bank (IDB) has written, “Policymakers realize that they need to access the deep knowledge held by the private sector in order to learn about market failure and formulate the right policies to address them.”

On the other hand, the private sector wants a stable and transparent regulatory environment in which to operate. It doesn’t want more regulations, but better regulations that will protect its investments. For that, it needs the government to listen and act in a way that will create an enabling business environment. Building trust is hard work.

Differences between public and private stakeholders certainly exist, but so do commonalities. It never takes long for parties to acknowledge that there is a clear common ground to strive for: sustainable economic development that should lead to inclusive growth. That, in turn, will spur job creation and revenue collection for the state. That’s an irrefutable win-win scenario.

Opening markets: Mexico uncovers and slashes local barriers to competition

Marialisa Motta's picture

In the state of Chiapas, Mexico — where nearly 1 million people live in moderate to extreme poverty — bus fares have been too high, and the availability of buses has been limited. Over four years, consumers on a single route have paid $2.5 million more than necessary. Tortillas in states across Mexico are more expensive than they need to be. In one state, firms overcharge for road construction by an estimated 15 percent, making it difficult to provide the high-quality transport services for cargo and construction materials that are necessary to build a logistics hub to diversify the state economy beyond petroleum. Another state has a very dynamic economy, hosting a greater density of industrial parks than comparable states. Given the positive spillover effects — industrial activity boosting local employment, demand, and purchasing power — the state expected growth in retail markets. Yet, stores have not been opening. Yet another state relies on tourism to generate business opportunities and jobs, including for poor people. However, until recently, tourists found that commercial establishments in the state’s primary municipality closed in the evenings and at night, often preventing them from going shopping.
 
What do these examples have in common? Local barriers to competition.

In the past few years, the Mexican Federal Competition Authority (COFECE) and Better Regulation Authority (COFEMER), internationally recognized institutions, as well as the World Bank Group, have pointed out that subnational regulations restrict competition in local markets. In many municipalities in Mexico, regulations and government interventions allow market incumbents to deny entry to new firms, to coordinate prices, to impose minimum distances between outlets, or to grant incumbents exclusive rights to artificially protect their dominant position. In total, a lack of vigorous marketplace competition costs the Mexican economy about one percentage point of GDP growth each year – a shortfall that affects the country’s poorest households by an estimated 20 percent more than its richest households. Most countries, however, have never systematically scrutinized local barriers to competition.


 
To address such issues effectively, competition policy experts from the World Bank Group’s Trade & Competitiveness Global Practice have developed an innovative tool – the Subnational Market Assessment of Competition (SMAC) – to systematically identify, prioritize and support the removal of local barriers to competition. (The SMAC is built from the World Bank Group Markets and Competition Policy Assessment Tool, or MCPAT.) The World Bank Group designed the SMAC to prioritize the reform of the rules and practices that most severely prevent healthy competition in the primary sectors for each state’s economic development.

Four things not to miss in shaping the new Global Action Agenda for Transport

Nancy Vandycke's picture

At the recent Climate Action 2016 Summit, several key stakeholders joined the World Bank Group in a call for global and more concerted action to address the climate impact of transport, while ensuring mobility for everyone. In a month from now, the High-Level Advisory Group on Sustainable Transport, which was established by the United Nations Secretary General Ban Ki-Moon for three years, will release its conclusions on what actions are needed to support “more sustainable transport systems”. This will lay the ground for the first UN Global Conference on Sustainable Transportation on November 26-27, 2016, in Ashgabat. As the HLAP is finalizing its report, here are four things that the new Global Action Agenda should not miss.

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