Improving Governance in Developing Countries

Improving Governance in
Developing Countries
Presented to: Presented by:

Governance & Anticorruption Sanjay Pradhan
Core Course Director
Public Sector
Governance Board
Governance &
The World Bank Anticorruption Core
The World Bank Course, page ‹#›
Focus for Today: Outline
 Importance of Good
Governance & Anticorruption
 Governance: Framework &
Measurement
 Priority Areas for Improving
Governance
 Operational Strategy on
Anticorruption
Governance &
Anticorruption Core
Governance – Good and Bad
Lessons from the last 50 years
 Some governments have helped deliver

substantial improvements in income, health
and education outcomes (East Asia)
 In other countries, governmental action has

resulted in wasted resources, weak
investment and growth, and entrenched
corruption
Governance &
Anticorruption Core
Good Governance matters for
investment and growth
% Investment share in GDP Income per capita Growth Rate
20% 2%
1.5%
1%
0.5%
15%
0%
-0.5%
-1.0%
10% -1.5%
High Medium Low High Medium Low
Governance Quality
Governance Quality measured by perception of 4000 firms in 67 countries on: (i) protection of property rights; (ii) judicial
reliability; (iii) predictability of rules; (iv) control of corruption. World Development Report Survey 1997
Governance &
Anticorruption Core
The direction of causality …
Growth causes governance to … and better governance causes
improve ... growth
 Using measures of rule of law, bureaucratic

 Burkhart and Lewis-Beck (1994) found quality and corruption, Chong and Calderon
that while higher per capita incomes (2000) found significant causality from good
foster democracy, democracy in turn governance to growth and vice versa – i.e.
does not foster higher incomes “good governance” both contributes to and
results from strong economic performance
 B. Friedman (2005) argues that higher  Other studies have dealt with the potential for
living standards encourage more open, reverse causation by using exogenous
tolerant and democratic societies instruments for the governance indicators and
concluded that good governance has a
significant and strong causal impact on
economic performance …
… but the debate on causality continues …
Governance &
Anticorruption Core
Bangladesh
Governance – Growth Conundrum
 Moderate growth rates and high corruption coexist
 Need to unbundle governance – not all bad news
 State allowed civil society to step in and deliver key services
 Is Bangladesh’s governance ‘good enough’?
 Bangladesh needs to move to a higher growth path of 6-7% a year to
achieve the PRSP’s poverty reduction objectives and related MDGs
 Growth rates may not be sustainable – growth is driven largely by garment
exports and phase out of the MFA quota system puts this growth at risk
 Fiduciary and reputational risk to Bank significant
 Improving governance is key to unlocking other sources of growth
 According to the 2005 ICA, corruption is now the greatest obstacle to doing
business, overtaking power
 Bangladesh remains fairly isolated from the world economy and is unable
to capitalize on the growth dividend that globalization might bring. Trade
openness is very low (Bangladesh ranks 175 out of 182 countries), as is
FDI (Bangladesh ranks 137 out of 141 countries). Attracting FDI would
require significant improvements in the investment climate
 Improving critical infrastructure, especially power and ports, requires
solving fundamental governance problems in each sector Governance &
Anticorruption Core
 Governance: Framework
Governance
Anticorruption
Governance &
Anticorruption Core
Governance & Corruption – Not the same thing!
The manner in which the State

acquires and exercises its
Governance authority to provide public
goods and services
Using public office for

Corruption
private gain
Corruption is an outcome – a consequence of the failure of

accountability relationships in the governance system
Governance &
Anticorruption Core
Governance Systems: Supply and Demand
 Supply-side: Capacities and organizational

arrangements – leadership, skills, human resource
and financial management systems – embodied in
state institutions to deliver public goods and
services
 Demand-side: Institutions and accountability

arrangements – elections, political parties,
parliaments, judicial systems, free press, civil
society organizations, accountable local
governments – that enable citizens and firms to
hold state institutions to account
Governance &
Anticorruption Core
Governance Systems:
Actors, Capacities and Accountability
Citizens/Firms
Political Actors & Institutions

• Political Parties
• Competition, transparency
Executive-Central Govt
Civil Society
Citizens/Firms
Citizens/Firms
Check &
& Private
Balance
Sector
Institutions Cross-cutting Control
• Civil Society
• Parliament Agencies (Finance, HR)
Watchdogs
• Judiciary
• Media
• Oversight
• Business
institutions
Associations
Service Delivery &
Regulatory Agencies
Subnational Govt &

Communities Outcomes:
Services,
Regulations,
Citizens/Firms
Corruption
Governance &
Anticorruption Core
Governance Systems:
When Accountability Breaks Down
Citizens/Firms
State
Political Actors & Institutions Capture
• Political Parties
• Competition, transparency
Executive-Central Govt
PatronagCivil Society
Citizens/Firms
Citizens/Firms
Check &
Balance e& & Private
Sector
Institutions Cross-cutting Control nepotis • Civil Society
• Parliament Agencies (Finance, HR)
• Judiciary
m Watchdogs
• Media
• Oversight
• Business
institutions
Associations
administrati
Service Delivery &
ve Regulatory Agencies
corruption
Subnational Govt &

Communities Outcomes:
Services,
Regulations,
Citizens/Firms
Corruption
Governance &
Anticorruption Core
Governance Problems: Some Examples
 Grand Corruption: State Capture
 Leaders plundering state assets (Mobutu, Abacha)
 Powerful “oligarchs” buying state officials (CIS)
 Corrupt leaders colluding with corrupt investors: non-
competitive, non-transparent award of contracts (oil & gas)
 Nepotism and Patronage in Public Service

 Political pressure for award of contracts, appointments
 Politicized transfers (South Asia)
 Administrative (Petty) Corruption & Inefficiency:

 Bribes for licenses, permits, government services
 Diversion of funds for public programs
 Inefficient and ineffective service delivery
Governance &
Anticorruption Core
Two Governance Patterns
 Good (enough) governance: Developmental

orientation of political leadership, functional check
& balances, system not highest performing but
mutually reinforcing and self-correcting
 Clientelist: Political leaders use authority to

maintain their power base or are captured by
powerful private interests. Leaders bypass check
and balance institutions and use bureaucracy for
patronage.
Governance &
Anticorruption Core
Good Governance has many dimensions
Citizens/Firms
Political Accountability
• Political competition, broad-based political parties
• Transparency & regulation of party financing
• Disclosure of parliamentary votes
Checks & Balances Effective Public Civil Society & Media

• Independent, Sector Management • Freedom of press, FOI
effective judiciary • Ethical leadership: asset • Civil society watchdogs
• Legislative oversight • Report cards, client surveys
Citizens/Firms
declaration, conflict of
(PACs, PECs) interest rules
Citizens/Firms
• Independent • Cross-cutting public Private Sector Interface

oversight institutions management systems: • Streamlined regulation
(SAI) meritocracy, public • Public-private dialogue
• Global initiatives: finance, procurement • Extractive Industry
UN, OECD • Service delivery and Transparency
Convention, anti- regulatory agencies in • Corporate governance
• Collective business
money laundering sectors associations
Decentralization and Local Participation

• Decentralization with accountability
• Community Driven Development (CDD)
• Oversight by parent-teacher associations & user groups
• Beneficiary participation in projects
Citizens/Firms Governance &

Anticorruption Core
The Bank operations focus only on some
Citizens/Firms
Political Accountability
• Political competition, broad-based political parties
• Transparency & regulation of party financing
• Disclosure of parliamentary votes
Civil Society & Media

• Freedom of press
Checks & Balances Effective Public • Freedom of information
• Independent, Sector Management • Civil society watchdogs
effective judiciary • Ethical leadership: asset • Public hearings of draft laws
• Legislative oversight • Report cards, client surveys
Citizens/Firms
declaration, conflict of
(PACs, PECs) interest rules • Participatory country
Citizens/Firms
• Independent • Cross-cutting public diagnostic surveys

oversight institutions management systems: Private Sector Interface
(SAI) meritocracy, public • Streamlined regulation
• Global initiatives: finance, procurement • Public-private dialogue
UN, OECD • Service delivery and • Break-up of monopolies
Convention, anti- regulatory agencies in • Extractive Industry
money laundering sectors Transparency
• Corporate governance
• Collective business
associations
Local Participation & Community Empowerment

• Decentralization with accountability
• Community Driven Development (CDD)
• Oversight by parent-teacher associations & user groups
Primary focus • Beneficiary participation in projects
of WB
operations in
governance Citizens/Firms Governance &
Anticorruption Core
Operational Implication: Unpack Governance
 What are the specific governance problems of

concern?
 Corruption? If so, where is it concentrated? Health? Education? Financial
sector? Procurement?
 Poor delivery of public services? If so, which one?
 Weak credibility for private investment?
 What are the specific drivers of poor outcomes?

 Powerful interests purchasing state policy for private interest
 Kick-backs in public procurement
 Lack of citizen voice to influence service delivery
 Weak checks and balances to constrain arbitrary action
 What are the priorities for governance reform?

 Public regulation and financing of political parties
 Transparent, competitive procurement
 Strengthened legislative oversight, independent judiciary
 Meritocracy in public administration
Governance &
Anticorruption Core
 Governance: Measurement
Governance
Anticorruption
Governance &
Anticorruption Core
Two Approaches to Measuring Governance
 Broad and Aggregated: Broad

measures to measure governance at more
aggregated levels. Help reveal systematic
patterns – and basis for monitoring trends
over time.
 Specific and Disaggregated: Specific
measures of quality of key governance
subsystems, including using “actionable
indicators” to benchmark and track reforms.
Governance &
Anticorruption Core
Control of Corruption: one Aggregate Indicator
(selected countries from 204 worldwide, for illustration, based on 2004 research data)
2.5
Margins
Good of Error
Governance
Governance
Level
Poor Gov-
ernance
-2.5
EQUATORIAL GUINEA
UNITED KINGDOM
KOREA, NORTH
NETHERLANDS
KOREA, SOUTH
BANGLADESH
GREECE
TURKMENISTAN
UZBEKISTAN
SOUTH AFRICA
NEW ZEALAND
FRANCE
VENEZUELA
FINLAND
NORWAY
BOTSWANA
CHILE
MAURITIUS
RUSSIA
SLOVENIA
TAJIKISTAN
SPAIN
ITALY
ZAMBIA
Source for data: : 'Governance Matters IV: Governance Indicators for 1996-2004’, D. Kaufmann, A. Kraay and M. Mastruzzi,
(http://www.worldbank.org/wbi/governance/govdata/); Colors are assigned according to the following criteria: Dark Red, bottom 10 th percentile rank; Light
Red between 10th and 25th ; Orange, between 25th and 50th ; Yellow, between 50th and 75th ; Light Green between 75th and 90th ; Dark Green above 90th.
Governance &
Anticorruption Core
PEFA’s Performance
Measurement Framework
Budget Realism:
Accountability and
Is the budget
Transparency:
realistic, and
implemented as Are effective external
intended in a financial accountability
predictable manner? and transparency
Six PFM arrangements in place?
System
Comprehensive,
Policy-based, budget: Aspects
Does the budget
Control:
capture all relevant
fiscal transactions, and Is effective control and
is the process, giving stewardship exercised
regard to government in the use of public
policy? funds?
Comprehensive Fiscal
oversight: Information:
Are the aggregate fiscal Is adequate fiscal, revenue and expenditure
position and risks are information produced and disseminated to meet
monitored and managed? decision-making and management purposes?
Governance &
Anticorruption Core
The “Bribe Fee” List
Unofficial payments by firms in Ukraine
Enterprises
Type of License/Service/”Favor” Average fee required admitting need to pay
(1996) “unofficially”
Enterprise registration $176 66%

Each visit by fire/health inspector $42 81%
Tax inspector (each regular visit) $87 51%
Telephone line installation $894 78%
Lease in state space (square ft. per month) $7 66%
Export license/registration $123 61%
Import license/registration $278 71%
Border crossing (lump sum) $211 100%
Border crossing (percent of value) 3% 57%
Domestic currency loan from bank on 4% 81%
preferential terms (percent of value)
Hard currency loan on preferential 4% 85%
terms (percent of value)
Governance &
Anticorruption Core
Citizen Report Card of Government Services:
Latvia
Post Office
State Educational Institutions
Office of Social Benefits
Polyclinic/Health Services
Agency of Immigration &
Citizenship
Prosecutor
Customs Service
Courts
Local Housing Authority
Police
0 10 20 30 40
Percent giving favorable rating Governance &
Anticorruption Core
The Challenge of State Capture
Proportion of firms
affected by capture of …
30
Parliamentary Votes
Presidential Admin. Decrees 25
Civil Court Decrees 20
15
10
Hungary Estonia Russia Ukraine
Governance &
Anticorruption Core
Measurement
Governance
Anticorruption
Governance &
Anticorruption Core
Priority Areas for Improving Governance
 Strengthening Public Management Systems
 Strengthening public finance management & accountability
 E-procurement for greater transparency and competition
 Improving front-line service provision

 Instituting citizen report cards and monitoring
 Strengthen community monitoring and oversight
 Strengthening Leadership & Ethics for good

governance
 Strengthening global checks and balances:

 Instituting transparency in extractive industries
 Strengthening global initiatives to curb transnational corruption
Governance &
Anticorruption Core
Strengthening PFM Systems a key priority
The new Important benefits from

international aid
architecture
using country's own
emphasizes the systems -- but need to
principle of mutual strengthen capacity and
accountability accountability of PFM
Scaling up of donor
assistance requires Increasing
sound PFM systems recognition that
and reduced "ringfencing"
corruption in partner projects will not work
countries
Governance &
Anticorruption Core
Bank interventions to build capacity:
multiple targets and tools (AFR)
Budget realism Tanzania MTEF
Budget AAA support merging planning and budgeting in

Lesotho
Comprehensiveness
IFMIS in Sierra Leone, accounting training in
Information Africa
Control Internal control and audit support in HIPCs
Oversight by CSOs & Civil society monitoring of Chad Oil Fund,

Professional Accountancy Institutions in DRC,
Professional groups Mali, Guinea and Kenya
Parliamentary Support for Parliamentary oversight in Ghana,

Kenya and Zambia; Supreme Audit Institutions in
Oversight Cape Verde, Sierra Leone and Senegal
Governance &
Anticorruption Core
‘Demand-side’ interventions to
strengthen accountability in PFM
Civil Society Oversight; Strengthening Supreme
Transparent, transparent, competitive Audit Institutions
competitive e- procurement (Hungary)
procurement (Slovakia)
(LAC)
Strengthening Public
Accounts Committees
of Parliament
(Kenya, Ghana, Zambia -- Procurement
AFR)
oversight by
CSOs
(Philippines)
Strengthening Public
Accounts Committees of
Participatory Parliament
Budgeting,
Puerto Alegra (India)
(Brazil) Public Expenditure Tracking & Information Campaigns
(Cambodia, Cameroon, Ghana, Madagascar, Mozambique, Papua New
Guinea, Peru, Rwanda, Senegal, Tanzania, and Zambia and on-going in
Azerbaijan and Yemen)
Governance &
Anticorruption Core
Chile’s Internet-based Public Procurement:
Transparency and Competition
All supplier companies register, indicating areas

of business (e.g., IT, construction, furniture)
 Public agencies submit tenders through internet
 Automatic e-mail to all companies in selected area
 Online information on name, position of official in-charge
 Online information on results: who participated,
proposals made, scores received, who won bid, historical
record of agency’s purchases and contracts
Governance &
Anticorruption Core
Civil Society Monitoring for Improved
Service Provision: Bangalore
100 94 92 96
90 85
78 77
80 73 73 73
67
70
% satisfied
60
47
50 41 42
40 34 34 32 32
30 25
20 16 14
6 9
10 5 4
n/a 1 n/a
0
l
y
i ty
ty
ls
ly
e
es
s
ci
it
se
l ic
ita
pp
ci
un
or
or
on
bu
Po
tri
sp
su
co
th
th
ph
ec
au
au
ho
ic
er
ity
le
El
bl
Te
at
rt
nd
ic
C
Pu
po
W
bl
La
Pu
ns
a
Tr
1994 Agencies
1999 2003
Source : Public Affairs Center, India Governance &

Anticorruption Core
Transparency & Community Monitoring:
Primary Education in Uganda
US$ per
Student
3.5
3.0 Public info campaign

2.5
2.0
1.5
1.0
0.5
0.0
1990 1991 1993 1994 1995 1999
Intended Grant Amount Received by School (mean)
Governance &
Anticorruption Core
Media,Transparency, and Combating Corruption
“BIR Officials Amass Unexplained Wealth”
By Tess Bacalla , Philippine Center for Investigative Journalism
Owner: Regional Director in the Bureau of Internal Revenue; forced to resign;
currently facing corruption charges; other officials suspended, also facing charges
CAR MODEL BENEFICIAL OWNER REGISTERED OWNER
Nissan Patrol Edwin Abella Sulpicio S. Bulanon Jr.
BIR Reg'l Director, 1817 Jordan Plains Subd.,
Quezon City Quezon City (listed address of
Abella in his SALs)
Ditto Merrick Abella (son of Abella)
Suzuki Grand
24 Xavierville, Loyola Heights,
Vitara Q uezon City
Nissan Cefiro Ditto Elizabeth S. Buendia
152 Road 8,-asa,
Pag Quezon City
BMW Lucien E. Sayuno Limtra Dev. Corp.
BIR Reg'l Director, Zone 4, Dasmariñas, Cavite
Makati City
BMW Ditto Marie Rachel D.ses
Mene
c/o Metrocor and Holdings, G&F,
Makati City
Honda Accord Danilo A. Duncano Daniel Anthony P. Duncano
BIR Reg'l Director, 2618 JP Rizal, New Capital Estate,
Quezon City Quezon City
Mitsubishi L200 Corazon P. Pangcog Alberto P. Pangcog (husband)
Asst.Reg'l Director, B2 L23 Lagro Subd., Quezon City
Valenzuela City
Honda-VCR Ditto Alberto P. Pangcog
9 Ricardo St., Carmel 1 Subd.,
Quezon City
Honda-VCR Ditto Ditto
BMW FlordelizaVillegas
P. Charito P. Sico
Revenue District Of’cer 8 Ma.Elena St., Carmel 1 Subd.,
Cabanatuan City Quezon City
Governance &
Anticorruption Core
Leadership & Ethics
 Beyond accountability systems, leadership and
ethics in public service shape standards of
governance and anticorruption
 Leaders set standards for integrity, catalyze
politically difficult change
 Way forward is to empower and develop critical
mass of reform-minded leaders committed to
integrity
 Innovative pilots in transformational leadership to
engender paradigm shift: Madagascar, Burundi,
Kenya
 Global Integrity Alliance: Peer support network of
public officials committed to ethics in public
service
Governance &
Anticorruption Core
Strengthening Public Service Ethics
5 Cs to Counter Corruption
Connectedness Care & Compassion
Creating a sense of
belonging to society Creating a sense of
Compassion to care for the
more needy in society
Strengthen
Values & Ethics:
Counter
Corruption
Courage Cosmology
Overcoming insecurity & Broaden vision by seeing

incessant quest for life in the context of
material acquisitions the huge universe
Commitment to
Contribute
Creating a commitment to public

service – to give v/s take
Source: H.H. Sri Sri Ravishankar (Founder, IAHV) @ The International Anticorruption Conference, Korea Governance &
Anticorruption Core
Recent global initiatives to curb
transnational corruption
 OECD Convention on Combating Bribery of Foreign
Public Officials (1997)
 UN Convention Against Corruption Treaty (2003) – 94
countries join
 Financial Action Task Force on Money Laundering (FATF)
(1989) -- 40 Recommendations (2003)
 Recovery of proceeds from corruption (Nigeria 2005)
 Publish What You Pay, Extractive Industries
Transparency Initiative
 World Bank blacklists corrupt firms
 Transparency International Principles for countering
bribery
 Governance Network of OECD DAC (GOVNET)
 Norway’s ‘Doers’ Network on Anticorruption (2004)
Governance &
Anticorruption Core
Extractive Industries Transparency
Initiative: Key Principles
 Independent review of payments made to the
government by oil, gas and mining companies and
of revenues received by government from those
companies by a reputable third party (i.e. audit firm).
 Publication in a readily accessible form of payments
made by the companies and of revenues received by
government.
 Extension of all of the above to companies including
state owned enterprises.
 Active engagement of all stakeholders in the design,
monitoring, and implementation process.
 Commitment to a work plan and timelines for
implementation.
Governance &
Anticorruption Core
Measurement
Governance
Anticorruption
Governance &
Anticorruption Core
Corruption pose three significant risks
Development
Effectiveness Risk
That poor governance-

corruption will undermine
the impact of
development efforts in
general and in donor-
supported projects
Reputational Risk
Fiduciary Risk
That large amounts of

That donor
aid in countries with
resources will not
corrupt leaders will
be used for the
tarnish donors’
purposes intended
reputation
Governance &
Anticorruption Core
Challenges in Identifying High-Risk
Countries
1 Afghanistan 21 Kyrgyz Rep. Country Country 2005
2 Angola 22 Lao, PDR Rank Source: TI Corruption CPI
3 Azerbaijan 23 Lebanon Perceptions Index (CPI) 2005 Score
4 Bangladesh 24 Liberia 117 Afghanistan, Bolivia, Ecuador 2.5
5 Belarus 25 Libya Guatemala, Guyana, Libya
6 Cambodia 26 Myanmar Nepal, Philippines, Uganda
7 Central African. Rep. 27 Nigeria 126 Albania, Niger, Russia, Sierra 2.4
Leone
8 Chad 28 Paraguay
9 Comoros 29 Sierra Leone 130 Burundi, Cambodia, Congo 2.3
(Republic), Georgia, Kyrgyzstan,
10 Congo, Dem. Rep. 30 Somalia Papua New Guinea
11 Cote D'Ivoire 31 Sudan 137 Azerbaijan, Cameroon, Ethiopia, 2.2
12 Djibouti 32 Swaziland Indonesia, Iraq, Liberia, Uzbekistan
13 Equatorial Guinea 33 Tajikistan 144 Congo (Democratic Republic), 2.1
14 Gambia, The 34 Togo Kenya, Pakistan, Paraguay,
Somalia, Sudan, Tajikistan
15 Guinea 35 Turkmenistan
151 Angola 2.0
16 Guinea-Bissau 36 Uzbekistan
17 Haiti 37 Venezuela 152 Cote d’Ivoire, Equatorial Guinea, 1.9
Nigeria
18 Iraq 38 Yemen, Rep.
39 Zimbabwe 155 Haiti, Myanmar, Turkmenistan 1.8
19 Kazakhstan
20 Korea, North (Countries in blue are inactive Bangladesh, Chad
158 1.7
WB borrowers)
Notes: Data on left: Countries listed in alphabetical order using 2004 data. These countries scored in the bottom quartile on the main corruption question in the World Bank’s 2004
CPIA which covered 135 countries AND scored in the bottom quartile on the 5 questions on broader governance issues in the 2004 CPIA OR scored in the bottom quartile on the 2004
Control of Corruption component of the WBI/DEC Kaufmann-Kraay Aggregate Governance Indicator. Countries not included in the 2004 CPIA but included in the WBI/DEC index are
here if they fell in the bottom quartile of that index (Afghanistan, Iraq, North Korea, Liberia, Libya, Myanmar, and Somalia). This list includes inactive borrowers and ineligible countries.
Inactive countries are defined as those with no lending/grants in SAP for FY04-06.
Governance &
Anticorruption Core
Anti-Corruption Strategy
World Bank
Anticorruption as
key filter in design Support international
of country efforts to reduce
assistance corruption
strategies
Prevent fraud and Help countries that

corruption in request support in
donor-financed their efforts to
projects reduce corruption
Governance &
Anticorruption Core
Addressing Corruption in CAS’s
Systematic diagnosis of the nature & drivers of corruption

Aid amount linked to level of corruption
Actions to address the most significant development risks
posed by corruption:
Reducing corruption in key sources of growth, service delivery
Actions to mitigate reputational risk from grand corruption:
Transparency in major procurement deals, asset declaration,
Actions to mitigate fiduciary risk:
Enhanced fiduciary safeguards in projects, PFM assessment for
using budget support
Political economy assessments to identify feasible actions
Coordinated donor action for complementarities and collective
impact
Governance &
Anticorruption Core
Major programs launched…
…with some evidence of success
Russia
Latvia (customs/treasury)
Ukraine
Albania (inspections) Kyrgyz Republic
(tax admin)
(public admin.) (governance reform)
Jordan
(civil society)
Cambodia
Ghana (PE (PE; forestry)
Guatemala accountability) Philippines
(procurement)
(diagnostic
to action Gabon Indonesia
program) (water/electricity)
(local
governance)
Bangladesh
Colombia Uganda
Pakistan (NGOs in
(diagnostics (education) social sectors)
(devolution)
& civil society) Tanzania India – Andra Pradesh
(PSR) Ethiopia (power; e-gov); Karnataka
(decentralization) (right to info)
Governance &
Anticorruption Core
Lessons learned:
Deeper challenges in high-risk countries
Strong on PFM Good at technocratic Emphasis on core public

diagnostics solutions and design management reforms
These appear to be working when the

underlying environment is conducive:
 Committed leadership
 Coalition for reform
 Capacity
Deeper underlying challenges

 State capture and corrupt leadership in clientelistic states
 Powerful vested interests and political obstacles
 Weak ‘demand’ pressures for reform – limited voice, media freedoms, civil rights, etc.
 Political drivers of corruption (e.g., lack of political competition, party financing)
Governance &
Anticorruption Core
Reducing corruption in high-risk countries:
Priorities for action in the next stage
Better understanding and management of
political economy of reforms
Develop operational strategies to engage with

corrupt leadership in clientelist, captured states
Tackle political drivers of governance challenges

in sectors (e.g., power, ports, EI)
Tackling political corruption (e.g. party finance,

electoral corruption, etc. ) with partners
Partnerships and new instruments to support

demand-side initiatives: working with civil
society, media, parliamentarians
Governance &
Anticorruption Core
Q&A
The World Bank
Governance &
Anticorruption Core
Course, page ‹#›

Improving Governance in Developing Countries

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Improving Governance in Developing Countries

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Improving Governance in

Presented to: Presented by:

 Some governments have helped deliver

 In other countries, governmental action has

 Using measures of rule of law, bureaucratic

The manner in which the State

Using public office for

Corruption is an outcome – a consequence of the failure of

 Supply-side: Capacities and organizational

 Demand-side: Institutions and accountability

Political Actors & Institutions

Subnational Govt &

Subnational Govt &

 Nepotism and Patronage in Public Service

 Administrative (Petty) Corruption & Inefficiency:

 Good (enough) governance: Developmental

 Clientelist: Political leaders use authority to

Checks & Balances Effective Public Civil Society & Media

• Independent • Cross-cutting public Private Sector Interface

Decentralization and Local Participation

Citizens/Firms Governance &

Civil Society & Media

• Independent • Cross-cutting public diagnostic surveys

Local Participation & Community Empowerment

 What are the specific governance problems of

 What are the specific drivers of poor outcomes?

 What are the priorities for governance reform?

 Broad and Aggregated: Broad

Enterprise registration $176 66%

State Educational Institutions

Office of Social Benefits

Local Housing Authority

Civil Court Decrees 20

Hungary Estonia Russia Ukraine

 Improving front-line service provision

 Strengthening Leadership & Ethics for good

 Strengthening global checks and balances:

The new Important benefits from

Budget AAA support merging planning and budgeting in

Control Internal control and audit support in HIPCs

Oversight by CSOs & Civil society monitoring of Chad Oil Fund,

Parliamentary Support for Parliamentary oversight in Ghana,

All supplier companies register, indicating areas

Source : Public Affairs Center, India Governance &

3.0 Public info campaign

Connectedness Care & Compassion

Overcoming insecurity & Broaden vision by seeing

Creating a commitment to public

That poor governance-

That large amounts of

Prevent fraud and Help countries that

Systematic diagnosis of the nature & drivers of corruption

Strong on PFM Good at technocratic Emphasis on core public

These appear to be working when the

Deeper underlying challenges

Develop operational strategies to engage with

Tackle political drivers of governance challenges

Tackling political corruption (e.g. party finance,

Partnerships and new instruments to support

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