Governance and the World Bank Group Year in Review 2017 Foundations and Frontiers CoNTENTS i The World Bank Group’s Governance Global Practice ii Message from the Senior Director 1 Governance and the World Bank Group: Foundations and Frontiers The Public Policy Cycle Fiduciary Aspects of Bank Operations Mobilizing and Using Resources Effectively Basic Service Delivery The Public-Private Interface 3 I – WORKING ACROSS THE PUBLIC POLICY CYCLE Policy Formulation Analyzing Political Economy Assessing Public Expenditure and Financial Accountability Getting Real-Time Feedback through Data Analytics Driving Performance from the Center 5 Policy Implementation Analyzing State Capacity Making Public Institutions More Inclusive Mobilizing Revenues Involving Citizens in Local Budget Planning Reforming Public Financial Management Systems Helping Enterprises Access Finance through Better Financial Reporting Addressing Bottlenecks in Service Delivery 9 Policy Evaluation Strengthening Justice Institutions Strengthening Parliamentary Oversight Harnessing Citizen Feedback Fraud and Illicit Financial Flows Reducing Corruption Risks Supporting Supreme Audit Institutions 12 II – MAJOR MILESTONES IN OUR GOVERNANCE WORK Focusing on Governance and the Law Modernizing the Procurement Framework Governance and Institutions in IDA18 15 III – Appendix TABLES 16 Table A.1. Governance Collaboration on Projects in Other Global Practices 17 Table A.2. Projects Delivered by the Global Governance Practice in Fiscal 2017 20 Table A.3. Advisory Services and Analytics Delivered by the Governance Global Practice in Fiscal 2017 24 Table A.4. Donors’ Total Contribution to Active Trust Funds Managed by the Governance Global Practice 25 Table A.5. Governance Global Practice’s Trust Fund Donors GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 The World Bank Group’s Governance Global Practice The Governance Global Practice (GP) is the locus of the World policy, social accountability, and taxation to develop Bank Group’s work to help client countries build capable, innovative, integrated solutions to institutional problems. efficient, open, inclusive, and accountable institutions. The Governance GP’s loan portfolio in fiscal year 2017 Countries with sound institutions prosper by creating an included 89 projects worth nearly $10 billion, along with environment that facilitates private sector growth, reduces 324 advisory activities. Strategic priorities to help countries poverty, delivers valuable services, and earns the confidence strengthen their governance include improving public financial of citizens. A relationship of trust is created when people can management, strengthening public sector performance, participate in government decision making and know their and enhancing accountability in service delivery to support voices are heard. openness and transparency. At the heart of the Governance GP’s work is a problem- Within the World Bank’s overall portfolio, governance driven, diagnostic approach, combining global comparative components are embedded in more than 20 percent of active knowledge of reform successes and failures with keen projects. The Governance GP provides fiduciary support to more understanding of the institutional challenges and opportunities than 2,000 projects and has one of the largest Reimbursable of developing countries. The expertise of its more than 700 Advisory Services portfolios in the World Bank. It also has a joint staff from more than 90 countries is broad and includes anti- mandate with the Social, Urban, Rural, and Resilience Global corruption, citizen engagement, digital governance, financial Practice to lead implementation of the Strategic Framework management, illicit financial flows, intergovernmental finance for Mainstreaming Citizen Engagement in World Bank Group oversight and accounting, justice and legal reform, open operations. This includes achieving the goal of beneficiary government, procurement, public management, regulatory feedback in 100 percent of investment projects by July 2018. 2017 Governance Portfolio in Numbers Governance-related Activities in Fiscal 2017 60 active projects +2,000 201 representing $11.3 ASA 1 projects supported by Financial Management billion and Procurement staff in commitments Work Led by the Governance Global Practice in Fiscal 2017 17 28 Nearly operations delivered 128 RAS1 in 12 countries for $70 million knowledge products $593 delivered $9.6million in new trust fund agreements signed2 million 1 Advisory Services & Analytics, Reimbursable Advisory Services 2 More information about trust fund partners may be found in appendix A. i GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Message from the Senior Director Welcome to this 2017 Year in Review of the World Bank Group’s work in Governance. This review offers a snapshot of the work we are doing across the globe to help our clients build public institutions that are capable, efficient, open, inclusive, and accountable. Using the three phases of the public policy cycle as an organizing framework, the report first presents a selection of the type of work we undertake at each of these critical entry points—formulation, implementation, and evaluation. The review then looks at three of the year’s most significant milestones for our work in governance. The first is the publication of the World Bank Group’s flagship report—World Development Report 2017: Governance and the Law—a game changer for how we work to close implementation gaps in public policy and performance going forward. The second is the launch of the new Procurement Framework which better positions our institution to help clients strengthen their national procurement systems, get better value for money, and increase transparency in public spending. The third milestone was the inclusion of Governance and Institutions as a Special Theme in the 18th replenishment of the International Development Association (IDA18)—a recognition of the importance of good governance in achieving development results on the ground. In the coming year, the Governance Global Practice will build on these milestones to support the needs of our clients and further reduce gaps in policy implementation. Deborah L. Wetzel Senior Director, Governance Global Practice World Bank Group ii GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 The Governance Global Practice: Foundations and Frontiers The World Bank Group’s work in governance has evolved The public policy cycle is the core of how government from a fiduciary focus in earlier decades that verified funds works and provides critical entry points for interventions and were used for their intended purposes to one that helps solutions: policy formulation, implementation, and evaluation. clients develop their public management capacity and sees A breakdown in governance can occur at any stage, from the governance as the process through which state and nonstate beginning when plans and goals are formulated, through the actors interact to design and implement policies within a set of transactions and institutions that bring them to life. both formal and informal rules. At the start of the cycle are primary government functions Governance systems that are transparent, responsive, such as agenda setting, formulating and approving policy, participatory, and accountable ensure that benefits and developing the appropriate regulatory framework, and services are delivered to the citizens who need them most, consulting on that policy to gain support. especially the poor and marginalized. Open and accountable Once a policy is approved, the cycle moves on to public institutions help build citizens’ trust in government and implementation—allocating resources and spending them support for development policies and outcomes. effectively, procuring the goods and services needed, and Around the world, this process called governance is not assuring they are delivered at the most appropriate level of working as well as it should or could. Resources are shrinking or government to the right people and the right time. not well used, services delivery is often inadequate, and citizens The cycle then moves on to reporting and accounting for are being excluded. results and the oversight of institutions to make sure resources At the heart of this are pervasive gaps in policy are used as intended and without corruption. It also includes implementation, and these gaps seem to be widening. In many the corrective mechanism of the judicial system when things countries, the sense of exclusion and the lack of responsiveness go wrong, and learning from experience and evaluation to feed and accountability are compounded by mismanagement of back into adjustments and changes as the cycle begins again. resources, corruption, capture, and collusion. As a result, the At every stage of this cycle there is a need for openness, trust of citizens in public institutions has fallen sharply around transparency, and engagement with citizens—because more the globe. inclusive approaches lead to better results. What can the World Bank Group do to help close these All the elements of the public policy cycle come together implementation gaps? in the World Bank Group’s Governance Global Practice (GP), Policy Formulation • Political economy • Legislative process • Regulatory framework • Diagnostics for policy formulation • Center of government Policy Evaluation Policy Implementation • Judicial oversight and redress • Leadership and coalition building • Audit and financial accountability • Civil service capabilities and incentives • Financial reporting • Budget preparation and implementation • Performance management • Procurement • Feedback mechanisms and citizen • Public-private partnerships monitoring • Devolution / decentralization • Integrity and anticorruption • Delivery of services 1 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 which captures the synergies of procurement, financial The Public-Private Interface management, taxation, public management, regulatory policy, Rather than thinking of the public and private sectors as citizen engagement, digital governance, law and development, separate universes, the World Bank Group works to reduce anti-corruption, and social accountability to help our clients public sector risks that may prevent investors from entering build effective, accountable, and inclusive institutions, and a country by providing greater transparency and corporate close implementation gaps that are eroding public trust in governance, especially for state-owned enterprises (SOEs), institutions. and by helping to strengthen the regulatory framework and Below are some key areas where the World Bank Group is improve the management of public investment. A key objective putting specific attention to help client countries improve their is maximizing finance for development by working with governance for the benefit of all, particularly the poorest. governments upstream to deepen the development impact of both domestic and external financing through the national Fiduciary Aspects of Bank Operations budget. The focus is on how to leverage commercial financing A fundamental foundation of governance work is supporting to meet the infrastructure gap in developing countries. Getting sound fiduciary management and procurement for all projects. good results from infrastructure investment requires good The World Bank Group continues to build its excellence in governance. fiduciary management to help clients strengthen their own Good governance requires sufficient public sector capacity, financial management systems. On the frontier of this work workable regulatory frameworks, and attractive incentives. is the World Bank’s new Procurement Framework, which That means building value for money, affordability, and fiscal became effective in fiscal 2017. It enables the World Bank to risk management into the roles and responsibilities of key support clients in new ways that lead to not only the effective actors; managing SOEs to enable rather than block enhanced use of public resources, but also stronger governance and private sector participation; making land available in a fair, transparency more broadly. The new framework is a key transparent, and consultative manner; fighting corruption and instrument for empowering improved government performance political capture of projects; and building impact evaluation, and achieving development goals. Transformational data collection, and learning into the infrastructure cycle to engagements, such as the use of big data, e-procurement, enable countries to refine their systems continually for the and open contracting, create new opportunities to leverage benefit of all. information, detect and deter corruption, and promote improved service delivery. Mobilizing and Using Resources Effectively Domestic resource mobilization and effective budgeting and public financial management remain at the very top of international and country agendas, as do decentralization, transparency, and openness. New data tools and techniques can be tapped for more effective use of human resources Purpose and Structure of this Review through civil service reform. Work in supreme audit institutions This year in review first presents a sample of the World and control entities, and more effective reporting, all help to Bank Group’s work in governance during fiscal year improve transparency, generate citizen feedback, and control 2017. Using the three phases of the public policy cycle corruption. On the frontiers of this work are opportunities as an organizing framework to illustrate the scope to use information technology to enhance transparency and of the World Bank’s work on governance, this review leverage information to fight fraud and abuse, tax evasion, and presents a selection of work undertaken at each of these illicit financial flows. critical entry points—formulation, implementation, and evaluation. Basic Service Delivery The review then looks at three of the year’s most Better governance is essential for equitable and reliable service significant milestones for our work in governance: the delivery. The World Bank is actively engaged in improving publication of the World Bank Group’s flagship report— service delivery in the water, health, education, and transport World Development Report 2017: Governance and the sectors with a focus on openness, transparency, and citizen Law; the launch of the new Procurement Framework; engagement to ensure services reach the poorest and and the establishment of Governance and Institutions marginalized. At the frontiers of governance for service delivery as a Special Theme of the 18th replenishment of the is big data to help generate citizen feedback and engagement International Development Association (IDA18)—the World and to think through how governments can become more adept Bank Group’s fund for the world’s poorest countries. at reaching citizens with what they need, when they need it. 2 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 I - WORKING ACROSS THE POLICY CYCLE 1 1 Policy Formulation • Political economy analysis • Diagnostics for policy formulation • Center of government At the start of the public policy cycle are core government functions such as setting agendas, formulating and approving policy, developing the appropriate regulatory framework, and undertaking efforts to gain broad support. At this stage of the cycle, the World Bank Group helps countries design policies to help mobilize and spend resources effectively and efficiently, design legislative and regulatory processes, and ensure this is done in a transparent and accountable manner. Its efforts include ways to enhance a client’s capacity to improve domestic resource mobilization and measures to improve public financial and expenditure management. The World Bank also aims to build client capacity to engage citizens in the policy process. Following are some examples of interventions across the formulation phase of the public policy cycle. 3 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Analyzing Political Economy fit their unique circumstances. For example, Myanmar is developing Policy making does not occur in a vacuum. It takes place within its public procurement system. With World Bank support, it took complex political and social settings, which can make or break a policy. an inclusive approach to developing public procurement policy by The World Bank Group uses political economy analysis to understand establishing a committee that includes officials from key spending these dynamics and potential impact. An analysis in Uganda looked ministries and oversight agencies. The committee received just-in- at why growth and productivity stagnated despite considerable policy time technical assistance as well as knowledge derived from related attention and donor support on the governance and incentive as- experience. In November 2016, the World Bank and Myanmar jointly pects of implementing agricultural reforms. As a result, a Governance organized the first-ever Public Procurement Knowledge Exchange Fo- Program-for-Results (PforR) operation is closing an implementation rum for the Association of Southeast Asian Nations, providing crucial gap—reflecting Uganda’s renewed emphasis on reviving sector growth inputs to the country’s effort to build a new procurement system. and reducing rural poverty. Its design is being informed by stakeholder consultations and ways to incentivize change. Getting Feedback through Data Analytics Mongolia’s 2010 Fiscal Stability Law couldn’t prevent an esca- The World Bank Impact Evaluation Program on Public Sector lation of public debt from less than 40 percent to more than 100 Governance, or ieGovern, is a collaboration between the Governance percent of GDP in only six years. Because this best practice solution GP and the Development Economics Research Group. It aims to failed, the World Bank analyzed the nontechnical drivers of fiscal improve project performance and push the governance knowledge consolidation. They include increasing state capture coupled with frontier by systematically collecting evidence from operations to heightened electoral promises with each cycle; scattered public inform project design. It also helps operational teams plan results- investments for constituencies and social transfers; and great- oriented public sector management operations based on what er politicization and frequent restructuring of public institutions. works and why. Findings informed the Strengthening Fiscal and Financial Stability To enable real-time feedback on project performance through Project and fed into the Systematic Country Diagnostic. impact evaluations, many projects embed innovative data collection methods in project designs and government systems. Kenya is Assessing Public Systems Performance: PEFA, PIMA, and working to reform the judiciary around delivering timely justice, MAPS clearing case backlogs, and improving case management systems. Global experience with Public Expenditure and Financial Account- An impact evaluation is testing the effects of information technology ability (PEFA) assessments demonstrates that effective planning investments and performance contracts for judges. As part of court and management are critical success factors for driving dialogue reform, a “big data” tool will gather and organize administrative daily on public financial management (PFM) reform and to hone reforms court output, and feed into a monthly report on each court. and planning. Good planning and preparation are also the key to The use of data analytics in public procurement supports da- ensuring relevant stakeholders—government officials, civil society, ta-driven decision making and helps maximize the use of limited and development partners—are engaged in, committed to, and own resources. Several studies were carried out in the Latin America the results of both the process and subsequent reform strategies. and the Caribbean Region to identify areas to improve efficiency, A new PEFA Framework took effect on July 1, 2016, adding four generate savings, and decrease procurement transaction costs. new indicators, expanding and refining existing ones, and recali- brating baseline standards for good performance. New training Driving Performance from the Center materials and guidance notes are available in three languages. Many governments adopt good policies, but often encounter Workshops, seminars, and other events reached 1,250 participants implementation gaps that derail intended outcomes. Problems can from 85 countries. Over the past year, 18 new national and 17 sub- occur anywhere along the public policy chain for reasons ranging national assessments in 26 countries were conducted. from technical complications to a process breakdown or a lack of The Public Investment Management Assessment (PIMA), de- understanding of related power asymmetries. Many governments veloped by the IMF, is another tool to assess three key pillars of address these gaps through the center of government approach, investment management (planning, budgeting or allocation of including the introduction of delivery units. The Governance GP’s investments and project implementation), and to identify priority work in this area is expanding. Today it is active in 26 countries, reforms for creating efficiencies. up from five countries in 2014. A new addition is Thailand, where In procurement, global experience with the Methodology for the the government recently established a delivery unit at its center of Assessment of Procurement Systems (MAPS) demonstrates that government. such assessments are critical to drive dialogue on public pro- Malaysia fostered a performance culture in its public sector. A 2017 curement, prompt clients to pursue reforms, and highlight where report, Driving Performance from the Center: Malaysia’s Experience reforms are most needed and how best to implement them. The with PEMANDU, highlights how delivery units can help strengthen recent MAPS revision enhances its capability as a universal tool to the link between policy and service delivery outcomes. Performance accelerate the implementation of modern, efficient, sustainable, incentives can drive the public sector to produce high-quality and more inclusive public procurement systems. outputs in an efficient, accountable manner. The report also identifies success factors for the Performance Management and Delivery Unit Supporting Procurement Policy Development (PEMANDU) and documents challenges faced. Lessons may be found The World Bank helps clients determine the best policy options to in what can be replicated and how to avoid pitfalls. 4 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 2 2 Policy Implementation • Civil service capabilities and incentives • Budget preparation and implementation • Delivery of services Once a policy is approved, the public policy cycle moves to implementation, which includes allocating resources and spending them effectively, procuring goods and services, and assuring they are delivered to the right people and at the right time. At this stage of the policy cycle, the World Bank Group helps clients strengthen their budget and procurement systems, build the capabilities and incentives of civil servants, leverage public-private partnerships to effectively deliver services to citizens, and establish or strengthen feedback loops to ensure citizens can voice their priorities in budget allocations and provide feedback to the state on the quality and delivery of services. Following are some examples of interventions across the implementation phase of the public policy cycle. 5 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Analyzing State Capability Ho Chi Minh Political Academy, the program trained elected State capacity to implement incrementally more complex and officials and civil servants on human rights issues and helped contentious tasks to achieve development objectives depends build their capacity to respond to citizens. In addition, efforts in large part on the motivation and productivity of government focused on building the capacity of civil society organizations personnel. They also impact an economy through business that promote the rights of women, youth, persons with regulations, infrastructure provision, and service delivery. disabilities, and ethnic minorities, and connecting these Governments typically employ 15 to 30 percent of all workers. organizations with their government counterparts for better Developing countries employ about 50 to 60 percent of formal inclusivity. sector or salaried workers. The World Bank recently launched an initiative called the Mobilizing Revenues Bureaucracy Lab to gather administrative data, survey The international community recognizes the pressing need for government bureaucrats, and conduct field experiments of developing countries to expand fiscal space under the “billions public sector reform initiatives. A better understanding of to trillions” effort to mobilize investments of all kinds to meet government personnel—their numbers, gender, age, academic the Sustainable Development Goals. Broadening and deepening qualifications, earnings, and occupations—is the bare minimum the tax base can help countries avoid dependence on official for analyzing state capacity and its impact on development development assistance and foreign borrowing, while also outcomes. Surveys of government workers can complement serving as a catalyst for broader improvements in government descriptive statistics by offering insights on human resource accountability, responsiveness, and institutional capacity. and management practices. A recent survey in the Philippines Apart from raising more revenue, focus is needed on the found that teachers were largely motivated by mission while quality, fairness, and equity of domestic tax collection. administrative workers were largely driven by job security. Countries with tax revenues below 15 percent of gross The government of Tunisia adopted a comprehensive civil domestic product (GDP) have difficultly funding basic state service reform strategy in May 2017 to improve public sector functions. Tax revenues in 36 percent of International performance and strengthen human resource management Development Association (IDA) countries and 70 percent of through a combination of short-term and structural reform fragility, conflict, and violence (FCV) situations are below that measures. The government imposed restrictions on wage threshold. increases through 2020 and strict controls on future To address its low rate of revenue mobilization, Pakistan is recruitments. Public-sector wages in Tunisia are among the reforming tax policy and administration through the Pakistan highest in the world. Through technical assistance under a Trust Fund for Accelerating Growth and Reforms Project. By multi-donor trust fund, the World Bank engaged in a policy taking a more holistic approach to tax policy, administration, dialogue with the government and stakeholders to reach and expenditure, the project builds on lessons from previous mutually beneficial agreements that will mitigate negative efforts that met internal resistance. It deploys an innovative effects on public service quality from an early retirement and set of tools covering process mapping and reengineering of tax voluntary departure program. administration, information technology and human resources assessments, and stakeholder analysis. To date, the tax to Making Public Institutions More Inclusive GDP ratio increased by 2 percent; taxpayer registration and The Nordic Trust Fund (NTF), a knowledge and partnership payment grew by 9 percent and 30 percent, respectively; and program housed in the Governance GP, focuses on a wide the number of tax exemptions fell. spectrum of human rights issues that can help make institutions more inclusive. These include promoting Involving Citizens in Local Budget Planning participation, accountability, and nondiscrimination as well as The Open Government Partnership is an international platform incorporating human rights considerations into development that brings together governments and civil society from 75 programs in the context of fragility, conflict, and violence. countries that are committed to transparency, accountability, In Vietnam, a series of grants contributes to citizen and citizen participation. It enables access to knowledge, awareness of human rights and provides an example of how resources, and a support community that can accelerate and the World Bank can engage on this issue in politically sensitive deepen structural reforms. A key objective is to catalyze larger, contexts. Human rights are clearly embedded in Vietnam’s multiyear support from IDA for open governance reforms. Constitution and policies. But there is a gap in implementation. Activities include access to information, asset disclosure, The NTF-funded program took a multipronged approach citizen engagement, fiscal transparency, open contracting, to strengthening the capacity of the government to raise open data, participatory budgeting, service delivery, and social awareness. It also trained journalists and built government accountability. and civil society capacity on the right to information, in view Kenya faces wide disparities in opportunity and service of Vietnam’s new access to information law. Working with the delivery across the country, and the government is pushing to 6 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 give communities greater decision-making power over public knowledge about cash management, business planning, resources. Translating these goals into meaningful action is risk management, and succession planning. EU-REPARI no simple task given the challenges of reaching citizens in harnesses the power of the accounting profession to help remote regions and ensuring the participation of women. The small business develop standards, institutions, and practices World Bank is piloting a participatory budgeting approach, so they can provide banks and investors with reliable which involves citizens in setting spending priorities, in the rural and relevant financial information. Improving financial counties of Makueni and West Pokot. transparency and financial management among SMEs is Preliminary results show government spending is better good for business and good for growth. aligned with needs. Citizens are increasingly prioritizing maintenance and upgrades of facilities as well as community- Modernizing Public Procurement Systems level investments such as wells and women’s development Public procurement reform is one of the most effective tools funds. The approach also sped up the budget approval process. for sustainable public sector reform. It is at the core of In West Pokot County, the share of women participating in translating public policy into tangible results for citizens and budget consultations grew from 11 percent to 35 percent. delivering essential services, while enabling transparency About 30 percent of the county’s development budget is now and citizen engagement. The World Bank provides finance allocated through participatory budgeting. The World Bank is and technical support to reform initiatives, including working to scale up these initiatives in other countries. capacity building, for its client countries. Its active portfolio exceeds $250 million in procurement reform and capacity Reforming Public Financial Management Systems development components across a range of lending and A key to success in PFM reform is experimenting with best advisory instruments. fit approaches that combine standardized best practice Vietnam is making significant progress in reforming its with customized solutions. Best fit entails not just adopting public procurement system after a new law went into effect and adapting effective solutions from elsewhere but also in 2015. The World Bank became the partner of choice for discovering new solutions to unique problems. Failing is Vietnam’s Public Procurement Agency and played a key role often the necessary price for succeeding in the long run. The in operationalizing the law. With the help of Advisory Services approach involves creating both instruments and a culture for and Analytics providing just-in-time technical assistance, doing adaptive, experimental, and iterative work. several objectives were met such as standard bidding Cambodia has travelled far along its reform journey. In documents for various procurement types, guidance notes 2004, the country was beset by poorly designed budgetary for procuring agencies, and expansion of the e-procurement systems and inadequate domestic revenue. Through program- system. Vietnam is removing legislative barriers to take full based budgeting, legislative reform, and strategic planning advantage of free trade agreements, and the World Bank and assessment, Cambodia’s PFM systems are substantially helped identify and address gaps in legislation to permit full stronger today, particularly at the central level. Achievements participation. include revenue collection going from 10 percent of GDP in The World Bank also encourages the digitization of 2004 to 18 percent in 2015 and 2016; elimination of payment public sector procurement systems in client countries to arrears; and implementation of a financial information improve public service delivery and governance. This work management system, leading to timelier payments and more includes customizing web-based procurement portals, accurate financial reports. Improved revenue performance led enhancing e-procurement capabilities, adopting integrated to the funding of several key reforms such as more education e-procurement systems, and integrating innovations such as funding and better compensation for civil servants. geotagging for asset management. The World Bank supports initiatives in 35 countries as part of broader reforms. For Helping Enterprises Access Finance through Better example, Bangladesh saves $90 million annually in public Financial Reporting procurement by using an electronic government procurement A new regional program financed by the European Union system developed and implemented with World Bank and implemented by the World Bank provides analysis and support—a savings equivalent to building 2,000 primary advice to Western Balkan countries to help them effectively schools or 1,000 kilometers of rural roads. implement financial reporting reform. EU-REPARI—the Road The World Bank’s new Procurement Framework sets a to Europe: Program of Accounting Reform and Institutional modern, principles-based foundation for public procurement Strengthening—focuses on the particular needs of small and serves as an important standard for countries to use and medium enterprises (SMEs), the most critical engines of to modernize their public procurement systems. Clients are economic growth and job creation in many client countries. using the new framework to achieve value for money. In In the Western Balkans, SMEs can’t readily access Morocco, the Project Procurement Strategy for Development financing largely because banks are wary of their lack of determines the fit-for-purpose procurement methods and has 7 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 been employed for a $2.2 billion public-private partnership for binding constraints to service delivery. In-depth studies solar energy production. In India, the North Eastern Region show that, in many countries, services do not reach the poor Power System Improvement Project is using “best and final because of poor implementation, not poor policy. Findings offer” and reverse auctions to achieve value for money to offer a fresh perspective on the complexities of why services construct transmission lines in remote areas. fail and the broader political and governance environment in In Papua New Guinea, the Emergency Tuberculosis Project which service providers operate. aims to improve the quality of health services and expand While Nepal has achieved significant improvements in their coverage and use to control the spread of tuberculosis in health indicators, weaknesses in public sector management targeted areas. Hands-on-Expanded Implementation Support systems are undermining coverage and quality of healthcare (HEIS) is being provided given the country’s fragile situation services. The Health Sector Management Reform Program and limited procurement experience. Moreover, the country is a collaboration between the Governance and HNP last received health sector support from the World Bank in Global Practices. Under PforR financing, disbursement 1993. HEIS was included in the project’s design to work with linked indicators in financial management, procurement, the National Department of Health during start-up activities, reporting, and information sharing enhance accountability, such as hiring consultants and contracting with United transparency, and citizen engagement. The indicators provide Nations agencies for the provision of specialized goods and incentives for addressing service delivery bottlenecks. services. A cadre of public service staff is being created throughout the Caribbean through a regional resource center that will allow governments to build their procurement capacity and maintain it. The Caribbean Procurement Training and Consultancy Center is part of a strategy to build sustainable procurement skills within government agencies. It offers professional and technical training programs to develop professionals with internationally recognized qualifications. Addressing Bottlenecks in Service Delivery Countries strive to improve public service delivery, but technical approaches have proved insufficient to improve services for the poor. Experience suggests improvements do not come simply through policy reforms, administrative engineering, facility modernization, or staff training. Effective political, administrative, and social institutions are essential. To improve public services, policy makers, public servants, and service providers must be accountable to citizens, and citizens must trust and engage with public institutions. Recognizing these interconnections are especially crucial in FCV situations, the Governance GP seeks to find integrated governance solutions within a local context. The Public Service Delivery Global Solutions Group integrates sector- specific and cross-cutting governance approaches and harnesses, adapts, and applies global knowledge across disciplines to help operational staff meet client demand for innovative public service delivery solutions. The group proactively connects perspectives, people, and knowledge across disciplines, facilitates learning and innovation, and distills lessons from experience. The Water Supply, Sanitation, and Hygiene Poverty Diagnostic initiative is a partnership among the Governance; Health, Nutrition, and Population (HNP); and Water Global Practices. It is conducting multidisciplinary research in 18 countries to better understand the impacts of inadequate services on human development outcomes and identify the 8 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 3 3 Policy Evaluation • Judicial oversight and redress • Audit and financial accountability • Financial reporting • Feedback mechanisms and citizen monitoring • Integrity and anticorruption The policy evaluation phase includes reporting and accounting for results and the oversight of control institutions to make sure resources are used as intended and without corruption. This part of the cycle also includes the corrective mechanism of the judicial system when things go wrong, and learning from experience and evaluation to feed back into adjustments and changes as the cycle begins again. The World Bank Group supports core systems of accountability including the judiciary, the legislature, and formal audit and financial reporting systems. It also aims to ensure the integrity of public resources and helps identify ways to protect these resources from corrupt practices. Finally, as in the earlier parts of the policy cycle, facilitating citizen feedback using mechanisms such as access to information provides opportunities to demand accountability from the state on the use of resources. Following are some examples of interventions across the evaluation phase of the public policy cycle. 9 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Strengthening Justice Institutions a baseline for measuring good parliamentary financial oversight; Effective and sustainable justice institutions, whether formal to pinpoint Balkan-led reforms and successes that could be or informal, are inclusive institutions. Inclusion promotes broad replicated; and to identify primary challenges for effective citizen engagement and meaningful participation and voice, financial oversight. This policy and reform process will result in especially for the poor and other vulnerable populations. It a regional performance framework for parliamentary financial can also mitigate the drivers of fragility, conflict, and violence oversight, endorsed by the stakeholders. The framework can providing processes and results that are perceived as being fair, be used by West Balkan budget and finance committees to open, participatory, and nondiscriminatory, which in turn can improve performance and help identify the challenges around help resolve underlying tensions. Improving justice services is which the development community can work with parliaments part of the broader governance effort to help meet the World to improve their financial oversight. Bank Group’s commitments in FCV situations, enhance the business environment, and attract significant private sector Harnessing Citizen Feedback investment. Constructive engagement between governments and The Palace of Justice in Oradea has been restored as part of civil society creates an enabling environment in which citizen the Judicial Reform Project in Romania to improve physical feedback can help solve fundamental problems in service delivery infrastructure, administrative capacity, and overall functional and ultimately strengthen the performance of public institutions. performance of the court system. For 300 judges and justice It is on this premise that the World Bank’s Global Partnership for personnel in three courts, it means a major improvement in Social Accountability (GPSA) was founded in 2012. their ability to serve citizens and marks an important step in The GPSA’s current portfolio of 34 projects involves more than meeting European and international standards of justice. The 200 civil society organizations and thousands of volunteers in project helped revise civil and criminal codes, prepare impact 25 countries. Examples of its work to harness citizen feedback assessments for four codes, and draft an insolvency code. It also for better development outcomes include the Improving supported information technology and audio recording systems Social Accountability in Drinking Water and Sanitation for court hearings. Project in Tajikistan, which helped enhance the ability of water associations and community advisory boards to monitor Strengthening Parliamentary Oversight the quality of water and sanitation in five districts. Greater The national budget is one of the most powerful development transparency and better service led to an increase in collection tools at a country’s disposal. Parliamentary participation in rates. In Benin, social accountability mechanisms such as public the budget process establishes checks and balances crucial for audits were adopted to better manage the collection of water transparent and accountable government and efficient delivery fees. Preliminary results indicate an increase of 23 percent in of public services. Although the important role parliaments play collection rates. in public financial management systems is well established, how parliaments from different traditions can most effectively Analyzing Big Data to Improve Public Procurement Results perform these functions is less clear. Making policy and strategy choices based on data enables In the Western Balkans, a project on strengthening legislative transformational shifts in government procurement. The World scrutiny addresses a knowledge deficit around the powers, Bank helps clients adopt performance measurements of their functions, and practices of parliaments as they relate to systems and collect and analyze procurement data. Under budget scrutiny and audit reports, with the goal of enhancing the new Procurement Framework, the Systematic Tracking of capabilities. The project collaborates with the Network of Exchanges in Procurement (STEP) collects data on the results Parliamentary Committees on Economy, Finance, and European of procurement activities related to World Bank projects and Integration of West Balkans (NPC). It consists of the Committee provides a monitoring and evaluation framework, benchmarks, on Finance and Budget from the Parliament of Albania, House of and performance metrics. Clients can use STEP for all Representatives of the Parliament of the Federation of Bosnia procurement under Bank-financed projects. and Herzegovina, Assembly of Kosovo, Assembly of the Republic In addition, electronic government procurement (e-GP) of Macedonia, Parliament of Montenegro, National Assembly is a primary tool to obtain data on performance, promote of the Republic of Srpska, and the National Assembly of the openness, and enhance transparency. By reducing transaction Republic of Serbia, as well as parliamentary budget offices costs, including procurement lead times, and promoting greater (PBOs) in the region. oversight, e-GP enables economic gains for governments and The NPC and PBOs are mapping practices across each improves results. jurisdiction related to the parliamentary secretariat, procedure Through the Public Procurement Statistics Capacity Building and committee system, parliamentary involvement over Project in Indonesia, the World Bank is helping to build the time, and participation and transparency. Practices are being capacity of the local government of Bandung City. The goal is compared to international parliamentary benchmarks to create to improve the availability and accessibility of data related to 10 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 public contracting and use the data for procurement and contract how survey and administrative data could be used to find monitoring to enhance government, civil society, and private sector anomalies in the environmental licensing process. While bribery capabilities. data collected through mobile phones offered inconclusive results, The World Bank has also been providing technical guidance, administrative data were effectively used to identify corruption red assistance, and support to the government of Zambia to develop flags. its e-GP system under the Public Financial Management Reform The World Bank Group added a new dimension to its work by Program. The system provides full functionalities for e-tendering, signing an agreement with Italy to forge an innovative partnership framework contracting, catalog management, contract for reducing corruption risk in public administration. Now in its management, procurement information management, and a fourth year, the program involves an anti-corruption curriculum for visualization interface to generate performance monitoring reports civil servants and peer learning on managing risks among public for stakeholders, including citizens. The system is integrated with agencies to support Italy’s passage of an anti-corruption law. other e-services, open contracting, and geotagging, which uses Success comes from its capacity to deliver timely, comprehensive, smart phones to remotely track a project’s physical progress. and engaging state-of-the-art training programs. New knowledge and tools can be shared with other countries facing similar Fraud and Illicit Financial Flows challenges. The rise of illicit financial flows (IFFs)—the movement of financial Preliminary results indicate a threefold increase in detecting assets across borders illegally or through illicit transfer— fraud cases and a 15 percent increase in collected revenues. demonstrates the international nature of corruption in a globalized More revenue is critical for economic growth and the public world and the need to adapt anti-corruption efforts. The World sector’s budget. Bank’s response to IFFs is organized around three work streams: measuring illicit flows; assisting client countries in preventing the Supporting Supreme Audit Institutions underlying behaviors that give rise to illicit funds; and supporting Supreme audit institutions (SAIs) oversee the management of country and international efforts to stop the flow of illicit funds public funds and the quality and credibility of financial data and recover stolen assets. reported by governments. They play a critical role in public sector For example, engaging with customs services in Madagascar is a accountability and good governance. Their contribution to good part of the World Bank’s contribution to improving public governance is twofold. As part of the public sector accountability sector performance and an element of an overall effort to system, SAIs reinforce the effectiveness of bodies responsible for combat IFFs and customs fraud. A review of compliance with government policy, expenditure, and public financial management. the Malagasy Anti-Money Laundering/Combating the Through their audit work, they assess policy implementation and Financing of Terrorism regime looks at progress toward assure compliance of policy makers. The World Bank supports meeting international standards, and an intervention is these key institutions, which are central to citizen trust in their underway to change the behavior of customs officials through institutions. performance contracts and an electronic system for tracking In fiscal 2017, the World Bank completed a three-year project operations. with the Caribbean Organisation of Supreme Audit Institutions to improve the ability of its 23 member countries to effectively Reducing Corruption Risks implement capital investment projects by enhancing external By escalating risks to some sectors of the economy, corruption accountability, legislative oversight, and public procurement. discourages investment and the creation of new firms, leads to The project supported the development and dissemination of an mistrust of institutions, and harms the poor the most. The poor audit manual for capital investment projects and a parliamentary pay a higher share of their income in bribes and are most likely oversight reference guide to support the capacity of the Public to be deterred from using health, education, and other essential Accounts Committee in overseeing the execution of public funds services. The World Bank Group has an extensive program of and building an understanding of risks and auditing within an activities to confront corruption, deploying its convening power, e-procurement environment. global reach, and technical expertise spanning 20 years. Its Also in fiscal 2017, the World Bank completed a three-year work emphasizes the critical role of transparency in addressing project in Suriname. It helped build the capacity of the professional corruption and the transformative power of technology to accountancy organization and the SAI, and enhance the capacity generate, exchange, and analyze information. of local accountants and auditors in using international financial A data analytics trial in the state of Ceará, Brazil, explored reporting and auditing standards. how mobile surveys and scientific techniques can be used to In Chile, the World Bank is undertaking an ambitious work uncover suspicious patterns of interactions between public service program with the SAI through nonlending advisory services. In providers and users. In the first experiment, feedback provided by fiscal 2017, the World Bank’s focus is strengthening the SAI’s patients through mobile phones was combined with administrative capacity to implement international practices in public sector data from hospital services. The second experiment investigated accounting and auditing. 11 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 II - MAJOR MILESTONES IN OUR GOVERNANCE WORK Three Milestones Fiscal 2017 marked three important milestones for the World Bank Group’s work in evolving the governance agenda. These are: the publication of World Development Report 2017: Governance and the Law (WDR 2017), the launch of the World Bank’s new Procurement Framework; and the inclusion of Governance and Institutions as a Special Theme in the 18th Replenishment of IDA (IDA18). 12 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Focusing on Governance and the Law Policy making and policy implementation do not occur in a vacuum, Key Changes to the Procurement Framework but rather in complex political and social settings where individuals and groups with unequal power interact in an environment of • Value for money (VfM) is introduced as the effective, changing rules as they pursue conflicting interests. The interactive efficient, and economic use of resources requiring the process is what the WDR 2017 calls “governance,” and the space in evaluation of relevant costs and benefits and an which these interactions take place, the policy arena. assessment of risks and the nonprice attributes or life Policy effectiveness depends on the capacity of actors to cycle costs. commit and their willingness to cooperate and coordinate to achieve socially desirable goals. But who bargains, who is excluded, • To achieve VfM, fit-for-purpose procurement approaches and what barriers block entry to the policy arena determine the are adopted, requiring borrowers to prepare a selection and implementation of policies and their ultimate impact procurement strategy for development for each project. on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to • A one-stop-shop for procurement processing and data achieve security, growth, and equity. management—the Systematic Tracking of Exchanges WDR 2017 asserts that governance can mitigate and even in Procurement—will track all procurements to overcome power asymmetries to bring about more effective policy streamline processes, measure timeliness, and provide interventions that achieve sustainable improvements in security, benchmarking. growth, and equity. This can happen by shifting the incentives of those with power, reshaping their preferences in favor of good • Improved quality in goods and services is supported outcomes, and taking into account the interests of previously through value for money decision making and the use excluded participants. These changes can come about through of nonprice attributes in evaluating bids. bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions • Greater flexibility is seen around using alternative for reform. procurement arrangements, including those of other Incorporating these insights into reform efforts is the charge for multilateral development organizations and the World Bank Group support for fiscal 2018 and beyond. borrowers’ own implementing agencies, subject to review and acceptance by the World Bank. Modernizing the World Bank’s Procurement Framework The new Procurement Framework, effective July 1, 2016, is • Greater support is available for fragile and conflict- designed to modernize the procurement policy and maximize affected situations and low-capacity borrowers through the strategic role of procurement in achieving key development expanded hands-on implementation support. effectiveness goals. The Governance Global Practice and the World Bank’s Operations Policy and Country Services are collaborating • Speedier procurement decisions are made by reducing on all aspects of the new framework and reporting results. The World Bank prior reviews of low-value contracts. Governance GP is primarily responsible for implementation issues, including providing fiduciary assurance to operations and hands- • Environmental and social development objectives are met on implementation support; building country procurement and by applying sustainable procurement. integrity systems; and staff development. Two examples show how the new framework supports • Greater integrity is achieved by introducing additional clients in their efforts to achieve value for money with integrity. integrity management actions. In Nicaragua, the Public Health Care System Project faced several obstacles in the public bidding process to buy off-road • Operating standards and measures are established for ambulances. After two failed attempts and extensive market complaints tracking. research, the client, with World Bank support, carried out a negotiated process and 176 off-road ambulances were delivered. • Greater private sector participation in sector In Guatemala, the borrower prepared a Project Procurement improvement programs is possible through model Strategy for Development under the Nutrition and Health Project, contract conditions for specific sectors. describing how procurement would support the development objectives and deliver value for money under a risk-based • More World Bank support is available for capacity approach. The World Bank helped the government identify building at project and country levels. activities, capacities, and markets, tailoring the procurement processes to market capacity. 13 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Governance and Institutions in IDA18 For the first time, governance is receiving special attention within the International Development Association—the World Bank Group’s fund for the world’s poorest countries—in terms of funding and policy focus. The inclusion of “Governance and Institutions” as a Special Theme in IDA18 underscores the importance of governance to achieving development results on the ground. IDA18 provides a new set of priority areas expected to have transformative impact, underpinned by specific, measurable policy actions. Policy Commitments for Governance and Institutions under IDA18 Objectives Policy Commitments Strengthen domestic resource • Provide support to at least one-third of IDA countries targeted at increasing their management tax/gross domestic product ratio through lending operations, Advisory Services and Analytics (ASA) and technical assistance including tax diagnostic assessments. Improve public expenditure, • Support at least 10 IDA countries in performing second or subsequent public financial management, and expenditure and financial accountability (PEFA) assessments to inform preparation procurement of their systematic country diagnostics. • Deliver the Methodology for Assessing Procurement Systems 2 in five IDA countries to accelerate the development of modern, efficient, sustainable, and more inclusive public procurement. Strengthen active ownership of • Support at least 10 IDA countries on enhancing SOE performance through: (i) state-owned enterprises (SOEs) performance agreements and/or (ii) increased transparency through published reports on their SOE portfolio. Support public administration • Perform joint operations, technical assistance, and/or ASA on sector-focused performance for service delivery governance in 10 IDA countries to identify and address institutional bottlenecks to service delivery with the health, water, and/or education sectors. Support institutional capacity to • Support at least 25 IDA countries in developing pandemic preparedness plans. respond to pandemics • Support 25 countries in developing frameworks for governance and institutional arrangements for multisectoral health emergency preparedness, response, and recovery. Integrate citizen engagement • Support projects in at least 10 IDA countries in the development and and beneficiary feedback into implementation of user feedback and/or enhanced Grievance Redress Mechanisms service delivery operations 108 for service delivery that ensure participation by women in these processes. Strengthen open, transparent, • Support at least one-third of IDA countries to operationalize reform commitments and inclusive governance through toward the Open Government Partnership agenda to strengthen transparent, Open Government commitments accountable, participatory, and inclusive governments. Mitigate illicit financial flows • Perform IFFs assessments in at least 10 IDA countries to support the identification (IFFs) and monitoring of IFFs. Enhance understanding of • Strengthen and systematize governance and institutional analysis in one-half of governance and institutions in Risk and Resilience Assessments and at least three-quarters of Recovery and situations of FCV Peace Building Assessments in IDA countries. Operationalize the 2017 World • Plan for operationalization of 2017 WDR focused on reducing implementation gaps Development Report (WDR) and enabling adaptive approaches. 14 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 III - APPENDIX TABLES Table A.1. Governance Collaboration on Projects in Other Global Practices Table A.2. Projects Delivered by the Global Governance Practice in Fiscal 2017 Table A.3. Advisory Services and Analytics Delivered by the Governance Global Practice in Fiscal 2017 Table A.4. Total Contribution to Active Trust Funds Managed by the Governance Global Practice Table A.5. Governance Global Practice’s Trust Fund Donors 15 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Table A.1. Governance Collaboration on Projects in Other Global Practices Commitment Project Name by Lead Global Practice Region Country / Economy Amount Agriculture Third National Fadama Development Project AFR Nigeria 500 Maharashtra Agricultural Competitiveness Project SAR India 100 Education Education Quality Improvement Project AFR Congo, Dem. Rep. 100 Better Education Service Delivery for All AFR Nigeria 445.7 Piaui: Pillars of Growth and Social Inclusion Project LAC Brazil 120 Energy and Extractives National Electrification Project EAP Myanmar 400 Modernization and Upgrade of Transmission Substations ECA Uzbekistan 150 Trans-Anatolian Natural Gas Pipeline Project ECA Azerbaijan and Turkey 800 Environment and Natural Resources Wildlife and Human-Elephant Conflicts Management in the South of Gabon AFR Gabon 9 Nam Theun 2 Social and Environment Project EAP Lao PDR 20 Finance and Markets Innovative Startups Fund Project MNA Jordan 50 Financial Sector Support Project SAR Bangladesh 300 Health, Nutrition, and Population Health System Modernization Project ECA Belarus 125 Nagaland Health Project SAR India 48 Health Sector Management Reform Program SAR Nepal 107.6 Health Sector Support Project SAR Bangladesh 515 Macroeconomics and Fiscal Management Economic Management Strengthening AFR Ghana 15 Agricultural Support and Fiscal Management Development Policy Operation AFR Malawi 58.9 Development Policy Operation Fiscal Consolidation Program AFR Chad 22 Productivity and Transparency Support Credit AFR Sierra Leone 22 Development Policy Operation Series on Energy and Public Financial Management AFR Burkina Faso 100 Poverty Development Policy Operation AFR Mali 50 Intergovernmental Fiscal Transfers Program AFR Uganda 145.9 Fiscal and Private Sector Participation Reforms Development Policy Operation AFR Mauritania 19 16 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Building a Modern Fiscal System Technical Assistance EAP China 22 Third Economic Reform Development Policy Operation EAP Kiribati 1.5 Chongqing-Dadukou Fiscal Sustainability Development Policy Operation EAP China 200 Hunan Fiscal Sustainability Development Policy Operation EAP China 200 Second Inclusive Growth Development Policy Operation EAP Tonga 5.3 Public Expenditure and Public Utilities Development Policy Loan 1 ECA Serbia 200 Second Programmatic Inclusive Growth Development Policy Operation ECA Georgia 110 Resilience, Inclusion, and Growth Development Policy Financing ECA Turkey 400 Enhancing Fiscal Management, Social Protection, and Financial Inclusion LAC Paraguay 100 Third Programmatic Resilience Building Development Policy Credit LAC Grenada 16.5 First Improved Governance of Public Resources and Nutrition LAC Guatemala 250 Second Competitiveness and Fiscal Management Programmatic Development LAC Jamaica 145 Policy Financing Business Environment and Entrepreneurship Development Policy Financing MNA Tunisia 500 Second Expenditure Rationalization, Energy Efficiency, and State-Owned MNA Iraq 1,444 Enterprise Governance Programmatic Development Policy Financing Competitiveness and Growth Development Policy Credit SAR Pakistan 352.8 Inclusive Growth Development Policy Grant SAR Afghanistan 73 Poverty Statistics Development Program AFR Ghana 40 Statistics Program for Results AFR Kenya 35.6 Improving Mali's Statistical System AFR Mali 20 National Statistics and Data for Development AFR Mozambique 62 Statistical Capacity Building Project LAC Haiti 5 Social Protection and Labor Enhancing Shared Prosperity through Equitable Services AFR Ethiopia 934.5 National Social Safety Nets Project AFR Nigeria 500 Federally Administered Tribal Areas Temporarily Displaced Persons Emergency SAR Pakistan 189 Recovery Project Strengthening Systems for Social Protection and Civil Registration Project SAR Nepal 150 National Social Protection Program SAR Pakistan 74.4 Social, Urban, Rural, and Resilience Inclusive and Resilient Cities Development Project AFR Cameroon 160 Urban Support Program AFR Kenya 300 Multisectoral Crisis Recovery Project for North Eastern Nigeria AFR Nigeria 200 Project for Improved Land Governance and Databases (VILG) EAP Vietnam 150 17 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Regional Infrastructure Development Fund EAP Indonesia 103 Scaling Up Urban Upgrading Project EAP Vietnam 240 Territorial Development Development Policy Loan LAC Colombia 800 Third Municipal Development Project MNA West Bank and Gaza 16 Madhya Pradesh Urban Development Project SAR India 116.2 Sindh Resilience Project SAR Pakistan 100 West Bengal Institutional Strengthening of Gram Panchayats Program II SAR India 210 Karachi Neighborhood Improvement Project SAR Pakistan 86 Trade and Competitiveness AFCC2/RI-Great Lakes Trade Facilitation AFR Africa 79 Kaduna State Economic Transformation Program-for-Results AFR Nigeria 255.4 Competitiveness and Jobs ECA Serbia 100 Rio Grande do Sul Sectorwide Approach LAC Brazil 480 Strengthening Service Delivery for Growth, Poverty Reduction, and Environmental LAC Brazil 350 Sustainability in the State of Ceará Program-for-Results Transport and ICT Transport Sector Modernization and Corridor Trade Facilitation Project AFR Burkina Faso 20 Transport Sector Modernization and Corridor Trade Facilitation Project AFR Côte d'Ivoire 30 Water Coastal Cities Sustainable Environment Project EAP Vietnam 236.2 National Hydrology Project SAR India 175 Note: AFR = Africa; EAP = East Asia and Pacific; ECA = Europe and Central Asia; LAC = Latin America and the Caribbean; MNA = Middle East and North Africa; SAR = South Asia. 18 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Table A.2. Projects Delivered by the Global Governance Practice in Fiscal 2017 Total World Bank Region and Project Name Country (US$,millions) AFRICA Improving Public Sector Performance Swaziland 25 Additional Financing for Economic Governance Technical Assistance and Capacity Building Guinea 22 Additional Financing II for Integrated Financial Management Information System Project Gambia, The 5 Additional Financing for Public Financial Management and Accountability Project Congo, Dem. Rep. 50 State Consolidation Development Program Central African Republic 20 Additional Financing for Public Sector Reform and Rejuvenation Project Congo, Dem. Rep. 45 Public Expenditure and Investment Management Reform Project Central African Republic 10 Additional Financing for Public Financial Management Improvement and Consolidation Sierra Leone 10 Integrated Public Sector Reform Project Congo, Rep. 40 EAST ASIA AND PACIFIC Strengthening Fiscal and Financial Stability Project Mongolia 12 EUROPE AND CENTRAL ASIA Justice Services Improvement Project Romania 67 LATIN AMERICA AND THE CARIBBEAN Transparency and Efficiency in Tax Administration Guatemala 55 Public Services Modernization and Innovation Argentina 80 MIDDLE EAST AND NORTH AFRICA Modernization of Public Financial Management (PFM) Systems Iraq 42 SOUTH ASIA Assam Citizen-Centric Service Delivery India 39 Himachal PFM Capacity Building Program India 36 Assam State Public Finance Institutional Reforms Project India 35 Total 593 19 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Table A.3. Advisory Services and Analytics Delivered by the Governance Global Practice in Fiscal 2017 Task Name Recipient AFRICA Toward Improved Governance Policy Framework Congo, Rep. Gap Identification in Construction Contracting Performance Ethiopia Public Finance Management Reimbursable Advisory Services (RAS) II Gabon Tax System Reform Technical Assistance Gabon Public Sector Reform/Wage Bill Management Ghana Public Financial Management Bottlenecks to Service Delivery Ghana Public Expenditure Review Mauritania Tracking Agriculture Sector Program Implementation Mozambique Evidence-based Institutional Mapping for the Mozambican Agriculture Sector Mozambique Aid Data Management and Rapid Assessment of Donor Assistance Mozambique Media and Public Service Improvement Madagascar and Mozambique Customs Revenues and Informal Trade in Niger Niger Program Performance Based Budgeting Reimbursable Advisory Services Seychelles Justice Services for the Poor Preparation Seed Sierra Leone Support to Procurement and Concession Somalia Financial Governance Policy Support Somalia Strengthening Accounting and Auditing Legal Framework South Sudan Governance Analysis: What Can Work for Capacity South Sudan Technical Assistance for Enhanced Aid Data Management Tanzania Public Expenditure Management and Financial Accountability Togo East Asia and Pacific Procurement Assessment—Risks and Opportunities for Service Delivery Cambodia Capacity Training Workshop to Project Implementation Units on World Bank Financial China Management, Disbursement and Procurement Statistics Capacity Building in Public Procurement East Asia and Pacific Supporting Indonesia's Open Government Initiative and Enhancing Data Quality and Accessibility Indonesia for Evidence-Based Policy Making Technical Assistance to Help Subnational Government to Improve Local Service Delivery Indonesia Effective and Accountable Village Regulatory Functions Indonesia Governance and Public Sector Management Analytical Support Mongolia Strengthening Auditing and Accounting Myanmar Problem-Driven Public Financial Management Pacific Island countries Supporting Reform Coalitions and Inclusive Institutions for Sustainable Change Philippines Managing Grievance and Conflict Solomon Islands Land and Resource Governance Timor-Leste 20 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Equity, Land, and Natural Resources Governance Vanuatu Public Expenditure Review Follow-Up for Fiscal 2017 Vietnam Advisory Services on Land Market Institutions for Efficient Land Administration Vietnam Europe and Central Asia Country Fiduciary and Project Implementation Review Albania Implementing Anti-Corruption Strategy Armenia Tax Reform Support Azerbaijan Promoting Transparency and Efficiency of State-Owned Enterprises Azerbaijan Improving Public Administration in the Turkish Cypriot Community Cyprus Fee-Based Services (FBS)—Support to Auditors and Audit Oversight Czech Republic FBS—Institutional Capacity Building: Czech National Bank Czech Republic FBS—Tax and Accounting Czech Republic Rapid e-Procurement Toolkit Europe and Central Asia Enhancing Public Spending Transparency and Performance Europe and Central Asia e-Procurement Online Learning Europe and Central Asia 13th Procurement, Integrity, Management, and Openness Europe and Central Asia Reducing Corruption Risks in the Public Sector Italy Improving Performance Orientation of Budget Management through Streamlined and Interlinked Kazakhstan Strategic Planning and Budgeting Advisory Support in Developing the Draft Code on Taxes and Other Obligatory Payments into the Kazakhstan Budget and Customs Regulation Strengthening Public Sector Audit Kazakhstan Building Capacity of Local Experts for Scaling Up Peer-to-Peer Kyrgyz Republic Open Contracting Moldova Improving the System of Public Procurement Montenegro FBS—Public Oversight (SECO) Poland FBS—Quality Assurance (SECO) Poland FBS—Tax and Accounting (SECO) Poland FBS—Financial Reporting Capacity (SECO) Poland FBS—Regulatory Framework (SECO) Poland FBS—English Training (SECO) Poland FBS—ISA Implementation (SECO) Poland FBS—Continuing Education (SECO) Poland RAS*—International Public Sector Accounting Standards: Public Sector Accounting and Financial Poland Reporting Anti-Corruption Romania Support for Outsourcing of Municipal Social Service Russian Federation *Reimbursable Advisory Services 21 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Wage Bill Management Serbia Vertical Functional Review of the Ministry of Finance Serbia Horizontal Functional Review Serbia Strengthening Public Investment Management Serbia Srbijagas Just-in-Time Technical Assistance Due Diligence Serbia Improving Tax Administration Ukraine Increasing Fiscal Transparency and Accountability Ukraine Preventing Corruption: Financial Disclosures and Preventive Anti-Corruption Agency Ukraine Rapid Actions to Strengthen Court Management and Functioning Ukraine LATIN AMERICA AND THE CARIBBEAN Strengthening Governance in Infrastructure Brazil Subnational Governance Monitoring Framework Brazil Participatory Governance for Better Citizen Security Brazil Phase 2 Behavioral-Informed Public Policy Central American countries Financial Management Country Systems and Fiduciary Training Central American countries RAS* for the Conceptual Design and Implementation of a Results-Based Public Investment Colombia Management Model Impact Evaluation for the Public School Meal Program Framework Colombia 2015 Public Expenditure and Financial Accountability Colombia Support for Implementation Guidance on New Accounting Regulations Colombia Public Expenditures Management Technical Assistance Dominican Republic Supporting Governance and Oversight of Public Financial Management Haiti Public Expenditure Review Jamaica CReCER (Accounting and Accountability for Economic Growth) 2017 Trust for Sustainable Growth Latin America RAS* Designing Standards for Oral Commercial Lawsuits Mexico RAS* Veracruz Public Sector Management Mexico Organisation of Eastern Good Practices for Courts Caribbean States countries Programmatic Governance Engagement Paraguay Governance of State-Owned Enterprises Uruguay Middle East and North Africa Public Finance Management Modernization Egypt, Arab Rep. Public Management, Transparency, and Regulatory Reform Iraq Technical Assistance—Kurdistan Regional Government (KRG) Public Procurement Modernization Iraq KRG Comprehensive Legal Review and Case Management Applications Iraq Lebanon Parliament Financial Oversight Lebanon *Reimbursable Advisory Services 22 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Supporting Economic Governance Transition in Tunisia and Morocco Middle East and North Africa Governance, Informal Trade, and Informality in the Maghreb Middle East and North Africa Survey of Land Tenure of Syrian Refugees Middle East and North Africa Modernizing Budget Systems Oman National Development Strategy Implementation Progress Framework Qatar Theme 2 Fiscal Management, Service Delivery, and Institutional Development Qatar Scoping PFM and Tax Activities Under the Technical Cooperation Program Saudi Arabia Strengthening Accountability and Oversight Institutions in Tunisia Tunisia Open Budget Portal Tunisia PFM Legislation Review United Arab Emirates World Government Summit United Arab Emirates Modernizing Public Procurement West Bank and Gaza Strategic Secondment to Enhance United Nations and World Bank Collaboration Yemen, Rep. South Asia Public Expenditure and Financial Accountability Review Bangladesh Government Performance Management Reform Bangladesh Support to Public Financial Management Strategy Bangladesh Public Financial Management Report (PEFA-II) Bhutan Nonlending Technical Assistance (NLTA) Support to the Aid Accounts and Audit Division, Department of Economic Affairs, Ministry of Finance for System Improvement and Staff India Capacity Building NLTA Support to Himachal Pradesh for Capacity Building of Key Institutions on PFM India Capacity Building on Contracts Management during Project Implementation India Audit Workshop for the Rashtriya Madhyamik Shiksha Abhiyan Program India Audit Workshop: Sarv Shiksha Abhiyan Program India World East Asia and Pacific–South Asia Public Finance Management Retrospective Study Multiregional Korean Digital Government Experience: Reflections and Implications for Developing Countries Global Piloting of Implementation of United Nations Convention Against Corruption Global Understanding the Costs and Benefits of Unharmonized and Unaligned Financial Management Global Arrangements Open Government Reforms: Analysis and Setting of Research Agenda Global Brainstorming Session on PFM Conceptual Framework Global 23 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Table A.4. Donors’ Total Contribution to Active Trust Funds Managed by the Governance Global Practice Fragility, Transparency Financial Decentralization Public Financial Public Human Conflict, and Justice and Contribution Donor Management Administration Tax Rights Violence, and Rule of Law and Social oversight and and Subnational (US$, millions) Accountability Reporting Government Post Conflict European 273 Commission Country United Kingdom 171 Switzerland 70 Canada 58 Sweden 46 Denmark 28 Australia 26 Russian Federation 26 United States 20 Norway 18 Finland 17 Austria 17 Netherlands 11 Germany 10 Korea, Republic 8 Belgium 7 Luxembourg 2 France 1 Ireland 1 Foundation Ford Foundation 4 Bill and Melinda 3 Gates Foundation Note: These donors account for 99.5 percent of the total contributions in active trust funds managed by the Governance Global Practice. Another 14 donors made smaller contributions. 80 -100 percent | 50-80 percent | 20-50 percent | 1-20 percent | Blank: Not applicable 24 GOVERNANCE AND THE WORLD BANK GROUP YEAR IN REVIEW 2017 Table A.5. Governance Global Practice’s Trust Fund Donors Donor Contribution (US$, millions) European Commission 272.54 Country United Kingdom 170.62 Switzerland 70.39 Canada 58.35 Sweden 45.61 Denmark 28.24 Australia 26.47 Russian Federation 26.40 United States 20.49 Norway 18.13 Finland 16.88 Austria 16.59 Netherlands 10.80 Germany 10.17 Korea, Rep. 7.60 Belgium 7.02 Luxembourg 1.75 France 1.35 Ireland 1.34 Spain 0.52 Mali 0.51 Benin 0.51 Chad 0.30 Iceland 0.30 Guinea-Bissau 0.25 Slovenia 0.11 Mexico 0.10 Philippines 0.10 Uganda 0.08 Timor-Leste 0.06 Dominican Republic 0.03 Foundation Ford Foundation 4.00 Bill and Melinda Gates Foundation 2.90 Aga Khan Foundation U.S.A. 0.50 Bertelsmann Stiftung 0.03 Total 821 25 © 201 7 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: +1 202 473 1000 www.worldbank.org This work is a product of the staff of The World Bank with external contributions. 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