Syndicate content

Governance

Boosting revenues, driving development: Join us to discuss!

Julia Oliver's picture


In a live-streamed event from 1 pm to 2 pm EST on Friday, April 21, the World Bank will host a discussion of a critical development issue: Taxes. The event, Boosting Revenues, Driving Development: Why Taxes are Critical for Growth, will include an illustrious list of panelists, representing many different perspectives:

How can Social Accountability address fragility and help societies rebuild?

Jeff Thindwa's picture
Students in a war torn classroom. Photo: Alex Baluyut / World Bank

By 2030, almost half of the world’s poor will be concentrated in countries affected by fragility, conflict and violence.  It’s easy to associate these problems with only poorer countries, but in fact they affect a broader range of countries, and yes, middle income countries too. And, increasingly, they cross borders. Beyond the threats of terrorism, conflict and violence, poor public services and economic livelihoods have led to mass migration and forced displacement, trapping growing numbers of innocent people in vicious cycles of deprivation.

Consider how the Syrian refugee situation has spilled over beyond the Middle East, and the current famine in South Sudan, which is impacting approximately 100,000 people, with millions of lives at risk in the region if we do not act quickly and decisively.

Bank supports launch of certificate course on contractual dispute resolution in India

Shanker Lal's picture
Powerlines in Mumbai. Photo: Simone D. McCourtie / World Bank


India is the fastest-growing major economy in the world with significant Government investments in infrastructure. According to estimates by WTO and OECD, as quoted in a report from the United Nations Office on Drugs and Crime, India: Probity in Public Procurement, the estimated public procurement in India is between 20 and 30 percent of GDP. 

This translates to Indian government agencies issuing contracts worth an estimated US$ 419 billion to US$ 628 billion each year for various aspects of infrastructure projects. Ideally, in contractual agreements no disputes would arise and both sides would benefit from the outcome. However, unexpected events occur and many contracts end in dispute. Contractual legal disputes devoid project benefits to the public as time and resources are spent in expensive arbitration and litigation. As a result, India’s development goals are impacted.

E-bureaucracy: Can digital technologies spur public administration reform?

Zahid Hasnain's picture
Photo: Arne Hoel / World Bank


“By introducing an automated customer management system we took a noose and put it around our own necks. We are now accountable!”

This reflection from a manager in the Nairobi Public Water and Sewerage utility succinctly captures the impact of MajiVoice, a digital system that logs customer complaints, enables managers to assign the issue to a specific worker, track its resolution, and report back to the customer via an SMS. As a result, complaint resolution rates have doubled, and the time taken to resolve complaints has dropped by 90 percent.

MajiVoice shows that digital technologies can dramatically improve public sector capacity and accountability in otherwise weak governance environments. But is this example replicable? Can the increasingly cheap and ubiquitous digital technologies—there are now 4.7 billion mobile phone users in the world—move the needle on governance and make bureaucrats more accountable?

How to manage revenues from extractives? There’s a book for that!

Rolando Ossowski's picture
 
Offshore oil and rig platform. Photo: © curraheeshutter / Shutterstock.


Countries with large nonrenewable resources can benefit significantly from them, but reliance on revenues from these sources poses major challenges for policy makers. If you are a senior ministry of finance official in a resource-rich country, what are the challenges that you would face and how can you strengthen the fiscal management of your country’s oil and mineral revenues? Consider some of the issues that you would likely encounter:

For many resource abundant countries, large and unpredictable fluctuations in fiscal revenues are a fact of life. Resource revenues are highly volatile and subject to uncertainty. Fiscal policies will need to be framed to support macroeconomic stability and sustainable growth, while sensibly managing fiscal risks. Also, there is a question of how to decouple public spending (which should be relatively stable) from the short-run volatility of resource prices.

Innovative solutions for resource mobilization in Zambia

Srinivas Gurazada's picture
Industrial area in the city of Kitwe, Zambia - located in the copper belt. Photo: Arne Hoel

What would you expect in a mineral rich developing country? High Government revenues from the mineral resources? Not always, and definitely not in the case of Zambia - until recently.

Zambia has a considerable wealth of mineral resources and its economy depends heavily on these minerals. Zambia's primary export, copper and copper-related products, account for as much as 77% of the country's exports.

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.

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.  

Higher revenue, easier filing for taxpayers in Armenia

Julia Oliver's picture


Photo credit: Dmitry Karyshev

Armenia was faced with a slowing economy, sinking remittances, and inefficient tax administration. At the same time, ordinary taxpayers had to navigate arduous processes when paying taxes. The Armenian government was eager to reform its tax administration. Below is a transcript of what we learned when we spoke to World Bank experts working with Armenian tax officials to make things better.
 
Julia: I’m Julia Oliver.
 
Maximilian: I’m Maximilian Mareis.
 
Julia: And we have been talking with tax experts around the World Bank to find out about what they do.
 
Maximilian: So, let’s start with this project in Armenia. Why did we get involved?

Julia: Well, the global financial crisis hit Armenia and its three million people pretty hard. In 2012, when the World Bank began working with policymakers to improve the country’s tax administration, the country faced a pretty bleak picture. Foreign remittances were low, and the domestic economy was slowing. In addition the country had high levels of informal employment.

Pages