NOVEMBER 2017 GOVERNANCE NOTES No.4 MARCH 2019 No.13 PUBLIC INVESTMENT MANAGEMENT: WHERE THE NEED IS GREAT Prepared by Emmanuel Cuvillier, Rafika Chaouali, and Fabienne Mroczka, Global Governance Practice A government’s provision of complementary public goods, such as roads and bridges, facilitates the development of markets initially and then domestically financed investment. leading to long-term economic growth. Private enterprise, • Formal project appraisal. Affected countries are by itself, is unlikely to provide such public works. Likewise, characterized by weak capacity and an almost total reliance a government’s investment in social infrastructure, such as on donors, who finance a high proportion of all public education and health, is critical, particularly for conflict- investment. In the immediate post-conflict stage, donors ridden populations deprived of adequate services as a result tend to suspend or fast-track value-for-money studies, of war and violence. Scaling-up of public investment is also in part because the focus is on replacing infrastructure central to the development objectives of developing countries, destroyed by war or disaster. Over time, the focus shifts particularly those left with rudimentary or badly damaged to rebuilding the country’s public investment appraisal infrastructure from conflict and violence. This Governance capacity. Note offers lessons learned and responds to some of the • Independent review of appraisal. There is effectively no questions often faced by World Bank teams when addressing capacity for independent review of appraisal. infrastructure and public investment management (PIM) • Project selection and budgeting. A lot of aid is provided off- deficiencies in fragility, conflict, and violence (FCV) situations. budget, and the attendant recurrent costs of donor projects Questions include: Is PIM in FCV different from other contexts? are poorly integrated into the budget. As donor funding How can weak PIM capacity be addressed? What are the winds down, there are periodic, large, unplanned demands on possible PIM starting points for spurring economic growth? the budget. Project selection can also be highly politicized when public investment is used to try to “buy peace.” BACKGROUND • Project implementation. There is a plethora of project Public investments in FCV situations are usually inefficient and implementation units and weak procurement capacity ineffective. They are often fraught with waste, corruption, and in relation to reconstruction needs. Efforts to reform misappropriation and are highly concentrated in a small number procurement are quite common. Monitoring of project of units or agencies, which may have weak institutional capaci- implementation is weak. ty. Thus, supporting better management of public investments • Project adjustment. Authorities often rely on donor is critical to rebuilding economic and social infrastructure, which systems to trigger a review when projects run awry. is key to quickly restoring basic services and reestablishing the • Facility operation. Asset registers are absent. Often, social contract and trust between the state and citizens. It can difficulties are faced in reestablishing clear administrative also foster opportunities for citizens to reap early peace divi- responsibilities for asset ownership. Other difficulties include dends, thereby planting the seeds for long-term stability. Box 1 ineffective project hand-over arrangements, a mismatch summarizes common features of PIM in context. between assets and needs, and insufficient funding for ongoing operations and maintenance. • Basic completion review and evaluation. Little or no basic Box 1. Common Features of Public Investment post-project review is apparent. Moreover, the country Management in Fragile, Conflict, and Violence Situations may lack a functioning Supreme Audit Institution or other PIM systems in fragile and conflict-affected situations tend auditing mechanism by which to independently conduct to exhibit the following features: basic compliance checks on projects. This Middle East and North Africa (MENA) Quick Note is a response to some of • Preliminary Screening. State capability to formulate a the questions that Bank teams typically face when they strategic direction is typically weak to nonexistent, with a plan to address infrastructure and PIM deficiencies in a FCV proliferation of donors forming a parallel administration in context. Questions include: Is PIM in FCV different from an attempt to rebuild basic infrastructure. National strategy other contexts? How can weak PIM capacity be addressed? formulation is often constrained by the need to rebuild the What are the possible PIM starting points for spurring social consensus shattered by the conflict. It can take many economic growth? years to develop and put in place coherent and authoritative national strategies to guide donor-financed investment Source: Rajaram (2014). 1 GOVERNANCE NOTES MARCH 2019 No.13 RATIONALE FOR INTERVENTION is to acquire a good understanding of it through an assessment. Efficiency in capital expenditures is increasingly important in the Where possible, it should identify strengths, weaknesses, face of public funding constraints in FCV countries. Many argu- and gaps in each stage of the whole-of-government process, ments for creating fiscal space are explicitly about the need to including the PPP process as a subset of the PIM process and better manage scarce resources and boost public investment in governance framework. It would cover the policies related to physical assets, such as public or social (health, education) infra- capital budgeting and PPPs. In many FCV countries, the PIM structure that contributes to improvements in human capital. system is very limited or nonexistent and will need to be rebuilt However, despite recent progress in improving the quality of public from scratch. In other cases, undertaking the assessment can investment in some countries, challenges in core functions remain be hazardous or impossible because of the security situation. In (see also World Bank 2017a). These challenges result in many the latter case, a simple survey filled out by local authorities or poor or inappropriate projects being undertaken, repeated cost development partners in the field would suffice to acquire a better overruns, implementation delays, poor investment outcomes, as understanding of system priorities. well as confusion and duplication of PIM roles, responsibilities, and Where World Bank teams can conduct an in-country processes, among other issues. evaluation, a basic PIM assessment should combine analysis from Today, the governments of FCV countries face the huge gover- the institutional structure, a process mapping, as well as the nance and financial challenge of rebuilding crumbling, war-torn application of PIM diagnostic tools and indicators to provide an infrastructure, as well as creating jobs—and maintaining peace integrated review of the system’s performance. The assessment and security. Key to rebuilding will be reducing the significant should also explain why the identified performance strengths, infrastructure deficit to grow these fragile economies. This chal- weaknesses, and gaps matter in the FCV context. The analysis lenge is compounded by weak governance and institutions. Hence, should cover the linkages with the procurement and the wider allocating scarce resources (natural, human, and capital) toward public financial management (PFM) systems. The performance obtaining maximum social and economic benefits should be at the report should also rely as much as possible on the quantitative top of development agendas. To do this, FCV countries need PIM indicators collected or estimated as part of the data gathering systems that perform well despite systemic capacity constraints. for the assessment. With this information, the subsequent Action Governments should seek good-fit projects, rather than “best Plan must consider a business process re-engineering to help practice” projects, informed by their own development priorities. organizations rethink how they perform PIM functions to improve In FCV situations, PIM must be adapted to the fragility cycle. service delivery, reduce operational costs, and achieve desired This requires a differentiated approach in response to the fragility results. landscape. The approach to strengthening the PIM system is dif- Country examples illustrate the important steps necessary for ferent for a state in deep fragility with weak institutions and poor a functional PIM system. governance compared to one in a state in transition with a peace agreement in place. Afghanistan: A preliminary PIM assessment was conducted in late 2017. A summary of the major gaps and recommendations IMPORTANT SYSTEM STEPS was shared with the government, forming the basis for its PIM Regardless of the financing source of a public investment reforms. Under an effort led by the Ministry of Finance, PIM work program, an adequate PIM system should include: (i) an is aligned with the Fiscal Performance Improvement Plan (FPIP), assessment of the PIM system; (ii) the development of a PIM aimed at strengthening core governmental systems.1 Four key PIM governance framework, including law and procedures for public- issues were identified and must be addressed by the government: private partnerships (PPP); and (iii) the preparation of a three- (i) separating the budget cycle from the project cycle; (ii) year rolling PIM Action Plan, eventually moving to a Maximizing identifying the criteria to be considered in selecting high-quality Finance for Development (MFD) Strategy when appropriate (see investments aligned with the country’s development vision; (iii) also Mousley et al. 2018). Where a full assessment is either nor upstreaming the harmonization of the PPP and public investment feasible or would not produce useful information, a one-off review project (PIP) pipelines; and (iv) streamlining the institutional of a project portfolio of recently completed projects or projects arrangements, systems, procedures, capacity, and management still in implementation can be a cost-effective and rapid way to necessary for effective PIM. identify much-needed improvements in the project planning and execution phase. Closer monitoring of project implementation Haiti: In 2014, a PIM assessment was conducted by the can also generate useful information regarding the sources of government to better understanding the strengths, weaknesses, weakness in the planning phase. These actions would go a long and gaps in each stage of the PIM process. It revealed a way to ensuring clarity and coherence in the PIM process, leading fragmented PIM system exhibiting distinctive features and to a clear set of priorities for the coming three years. The Action practices common to countries that are aid-dependent, such as Plan areas of focus and implementation would be differentiated weak appraisal capacity and reliance on donors to design good depending on the fragility context of each country. projects. There is insufficient support and basis for developing a sustainable and robust PIM system. Furthermore, domestically System and Process Assessments funded capital expenditures were not properly accounted, The first step in addressing the weaknesses in the PIM system tracked, and reported, denoting a lack of accountability and 1 The goal of the FPIP is to bring more of the funds and decision making under the budget to address the fragmentation and weak coordination that are typical of post-conflict contexts. 2 GOVERNANCE NOTES MARCH 2019 No.13 transparency as well as a potential risk of mismanagement of affected settings.2 Country examples illustrate FCV situations scarce public resources. These key areas are to be addressed by a which are often protracted, multidimensional, cross border and PIM improvement project.  impacted by transnational issues such as climate change, rising inequality, demographic change, new technologies, illicit financial Iraq: A PIM assessment was conducted in 2015 in Iraq and led flows, and violent extremism. to three key recommendations. The policy and management weaknesses it revealed included low economic returns on the Afghanistan: A strengthened PIM system needs to include: (i) public investment portfolio, large capital budget allocations, and increasing investment spending by increasing both the budget low levels of spending, partly as the result of poor project design, share of infrastructure investments, where possible, and planning, and preparation. The assessment recommended: (i) reorienting allocations to better performing projects; (ii) selecting improving the PIM system; (ii) implementing a solid system investments likely to be the most effective for stimulating as government capital spending intensified, along with using the economy and protecting particular social or vulnerable significant domestic financing; (iii) installing a complete PIM groups; (iii) helping accelerate investments between concept training system to improve local capacity; and (iv) integrating and implementation by building capacity to efficiently appraise the budgetary accounting system through the Iraqi Development proposals; (iv) improving the quality of investment spending by Management Information System (IDMS), which is designed regular monitoring and evaluation (Ministry of Finance 2017); to become the information technology backbone of the PIM (v) focusing public investments on and facilitating the effective system. This step includes creating an IDMS interface within the implementation of the 2017–21 Afghanistan National Peace and Iraqi Financial Management Information System, with a unified Development Framework; and (vi) strengthening capacity building governance framework for both PIP and PPP operations. The in project preparation, appraisal, selection, and implementation. IDMS should contribute to improving and strengthening planning capacity as well as and prioritizing and making better informed Haiti: To address a fragmented PIM system, the assessment investment decisions related to the federal government´s portfolio recommended clarifying the PIM regulatory framework for of projects. Also, it should improve the strategic allocation of planning activities with clearly identifiable responsibilities resources, helping to solve budget integration issues. encompassing all phases—from project identification to implementation and completion. This would also include the Addressing the Governance Framework development and adoption of a new procedures manual, which When the public investment decision framework leads to the would simplify existing, often cumbersome procedures. use of PPPs, the agency will use the PIM–PPP governance framework. FCV governments must strengthen it for managing Iraq: In 2015, the government adopted a PIM legal framework public investments to improve the efficacy (each project must aimed at establishing a public investment decision-making be verified for strategic fit to determine eligibility) and efficiency process that covers project concept, pre-feasibility, feasibility (each project must undergo an economic cost-benefit analysis) of studies, capital investment prioritization, financing modalities, the investment expenditure. This helps ensure they achieve the project execution, continuous monitoring of the fiscal affordability best possible results for the provision of goods and services. The of all projects, operations, and evaluations. This important decision to put in place a PIM governance framework should also step puts into place a formal, uniform, and consistent PIM encompass traditional PIP financing as well as a PPP process to process in Iraq, making it mandatory for all PIPs. In 2019, the determine project prioritization (based on cost-benefit analysis federal government plans to prepare an integrated PIM and PPP and expenditure efficiency), financing modalities (for example, on- governance framework aimed at facilitating MFD implementation. budget or through PPPs), and continuous monitoring of the fiscal affordability of all projects. Developing Action Plans A formal appraisal system for PIPs must provide the basis and The PIM assessment led to the establishment of an Action Plan conditions for the government to move ahead with only the most designed to strengthen the system. Given the weak institutional economically attractive and beneficial initiatives. It should allow capacity and limited resources, the plan should include quick- for transforming investment ideas into PIPs and public investment win options where possible, particularly in the early phase of decisions. In the short term, given the weak governance and recovery. Recent evidence shows the process by which projects capacity in FCV countries, governments should consider the are delivered (e.g., scale, community involvement, and expertise PPP process. It requires conducting a risk analysis, which would of project managers) can be more important than simply provide a relatively quick infusion of capacity and potentially getting projects built quickly. This is an important balancing of financing, to meet immediate requirements when shoring up act to consider. A well-sequenced short-, medium-, and long- the economic and social infrastructure. Hence, as a priority in term PIM Action Plan can be organized as follows: (i) formalize the early post-conflict years, FCV governments should consider the institutional setting (establishing management functions putting in place the requisite institutions and capacity to contract inside the PIM cycle); ii) develop capacity building in project with and manage PPPs. design, appraisal, and selection; (iii) improve capital investment FCV is becoming the new development frontier. By 2030, at project design, appraisal, and selection; (iv) enhance the legal least half of the world’s poor will be living in fragile and conflict- and regulatory framework of the PIM system; (v) improve the 2 World Bank estimate, using the FY19 Harmonized List of Fragile Situations. This estimate illustrates what poverty would be like if historical growth rates from 2006–15) continue into 2030. 3 GOVERNANCE NOTES MARCH 2019 No.13 registration process of projects by developing an Integrated Bank Haiti: The assessment led to a two-part Action Plan to improve of Projects (IBP); (vi) establish project selection and prioritization the PIM system through a short-term set of quick-win activities, criteria to be regularly revisited3; (vii) formalize the use of relevant, as well as a medium- to long-term set of actions to build a more key performance indicators; and (viii) improve PIP and PPP sustainable system. The latter covers the formalization of the through project management (execution, monitoring, and follow- institutional setup and the strengthening of project evaluation, up) and evaluation of results. selection, programming, execution, and control. As a first step, In the early days of reconstruction, it is critical that the priority was given to implementing basic elements of formal PIM Action Plan identify appropriate policies to ensure some project selection and appraisal, execution, and control, such as quick results, such as project prioritization, and the use the need for investment projects to: (i) advance only if they are of external donor financing, which could expire if not used mature enough; (ii) undergo monitoring (including physically); (iii) quickly. Nongovernmental channels, such as nongovernmental use scarce financial resources adequately; and (iv) be evaluated organizations and the private sector (in PPPs), could speed as required. The assessment and recommendations were included implementation. It may also be as critical in the early days of a in the government’s PFM reform plan. They were used as a basis PIM system for policymakers, service providers, sectors, and civil to rally the donor community and deliver a consistent message society to reach consensus on immediate priorities. Again, the about the importance of these reforms. goals are to seek quick wins and invest in areas that clearly offer Given the numerous weaknesses, the World Bank’s approach improvements in infrastructure and service delivery to inspire in the first year was to focus on building the basics, which included citizen trust and build a virtuous cycle of performance. Another streamlining procurement processes, creating a system to store practical way to quickly institutionalize PIM processes and build and monitor project information, and implementing a basic governmental capacity is for donor-financed projects to follow the system to prioritize projects. PIM process. This allows for the establishment of processes and pilots that can eventually form the basis for legislation, thereby Implementing reforms in Haiti. The 2014 evaluation and the ensuring that laws codify processes that are already in practice ensuing Action Plan assisted the government and donors in and implementable. forging a more concerted and focused approach in their efforts to strengthen the PIM system. Recognizing that sequencing Afghanistan: A preliminary PIM assessment was conducted by a and selection of key activities is of upmost importance, the World Bank team in 2017. Five key challenges were identified: (i) government and donors embarked on streamlining procurement projects are being included in the budget (investment decisions) processes to improve project implementation. In addition, the without a thorough process for project appraisal and selection government employed a new mechanism and systems to better at the pre-investment stage; (ii) the public investment pipeline monitor project implementation, particularly financial information is characterized by fragmented management into three distinct and an increase in oversight. Weakness was found in project categories under different ministries; (iii) the project cycle should appraisal and selection. Given donor assistance, project appraisal be separated from the budget cycle with a sufficient budget at this stage is mainly ensured by the donor community’s support dedicated for budget preparation; (iv) clarity is lacking around while the system is being strengthened. Although more work the respective roles and responsibilities at the pre-investment remains, the government is slowly moving toward the creation of stage; and (v) the project monitoring and evaluation process a network of professional planners to support PIM and the pursuit is weak. The ministries decided to continue the PIM and PPP of development goals. reform with a two-pronged approach—a functional review of the institutional structures and related processes used, including the Iraq: The PIM decree includes improving public investment establishment of a PIM Directorate at the Ministry of Finance, and procedures and installating a complete PIM system. These the strengthening of technical and human capacity across the actions and related actitivies are sequenced over the short term government’s line ministries. (2018) and medium term (2019–2020) implementation plans. In 2017, the Ministry of Planning established a PIM central unit that Implementing reforms in Afghanistan. The World Bank is will oversee project appraisal and monitoring (World Bank 2017c). supporting reform through three instruments: (i) the Incentive As a first step, it submitted to the Council of Ministers a list of Program Development Policy Grant; (ii) the FPIP advisory facility; projects consistent with government priorities. These projects will and (iii) PPP and the Public Investment Advisory Project. To undergo a rigorous cost-benefit analysis before budget inclusion. further enhance PIM and PPP capacity building, the Ministry For 2018, the plan called for improving capital investment project of Finance has expressed an interest in collaborating with the design, appraisal, and selection, and strengthening capacity in American University of Afghanistan to develop an ongoing project design, appraisal, and selection. For 2019–20, the plan curriculum to train government officials. Three aspects of the calls for: (i) improving the project registration process through reform remain critical: (i) developing a consistent PIM and PPP IBP; (ii) enhancing project management (including execution, governance framework at both the institutional and technical monitoring, and follow-up) and evaluation; and (iii) developing levels; (ii) upstreaming the harmonization of existing project capacity in project design, appraisal, and selection. pipelines; and (iii) initiating steps for the long-term sustainability of reform processes and capacity. Implementing reforms in Iraq. As Iraq strengthens its public 3 Project selection processes should consider the importance of distributional outcomes from public investment. Evidence shows that public investment can incite conflict if it fuels disputes or perceived disparities across ethnic and factional lines. 4 GOVERNANCE NOTES MARCH 2019 No.13 administration, the key priority is improving proficiency in PIM, The report identifies four main “arenas of contestation which PPP, and related areas that seriously undermine the ability involve what groups care about in their relationships with each of the government to deliver key public services. Regarding other and with the state and thus what they tend to fight vulnerabilities in the functioning of the federal Ministry of over—access to power, land, and resources, equitable delivery of Planning related to PIM activities, the government is gradually services, and responsive justice and security” (United Nations and moving away from the traditional focus on capacity to a new World Bank 2018). analytical focus on capabilities. The former refers to the volume Public investments can help restore the social contract or scope of ministry inputs of an appropriate quality, whereas the if they help address public grievances about lack of agency latter is about converting that volume into actual performance. and inequitable access to resources and services. This calls To address both urgent needs, such as training and performance for an additional effort to include citizen engagement in at both the federal and regional levels, as well as the long-term project preparation and implementation as well as oversight requirement for planning and development, the ministry will and evaluation (through social auditing, for example). Beyond conduct in 2019 a capacity needs assessment in all PIM and promoting active stakeholder participation, it is critical to support PPP areas of intervention. The Ministry of Planning of the Iraqi and secure government responsiveness to public concerns, Kurdistan Regional Government has successfully completed a including through government communications in response to functional review of its PIM system. public grievances. SPECIAL CHALLENGES KEY LESSONS LEARNED Situations of active conflict, as in Afghanistan and Iraq, and prolonged fragility, as in Haiti, also raise specific PIM challenges Assessment that need to be addressed in PFM reforms. PIM assessment in an FCV context should recommend the elaboration of a strategy to develop and gradually strengthen Addressing the tension between short-term stabilization and the PIM and PPP governance framework based on four key policy long-term development. In the short term, public authorities actions: (i) achieving economic growth and poverty reduction; (ii) need to “buy peace” for political and social stabilization purposes. balancing short-term priority actions and projects with strategic, This objective may inform the planning, including spatial medium-term concerns; (iii) ensuring that projects remain within distribution, of public investments and needs to be factored into the budget envelope with confirmed sources of financing, including the selection criteria. Perceived injustice in intergroup allocation for recurrent costs and operations and maintenance expenditures; of public investments should also be considered. Moreover, the and (iv) enabling policies that encourage the participation of the impact of public investment on fragility and ongoing conflict private sector when deemed appropriate. needs to be factored into feasibility studies and risk assessments. Public investments in contested areas or battlegrounds risk PIM and PPP Governance Framework exacerbating antagonisms and could be targeted by warring • It is critical that PIM functions have one transparent entry point factions. of PIP and PPP projects into the budget system. Without this, it is more difficult to maintain discipline of project identification Overcoming security challenges to implementation. In and appraisal if poor-quality projects are permitted to proceed contested, insecure areas, access by public officials may be straight into the budget. forbidden—impacting the ability to direct implementation, • Policymakers and affected communities should be encouraged supervision, and evaluation of investments. This calls for specific to participate in public meetings to plan and implement PIPs provisions in contracting, such as community-based procurement directed at improving infrastructure and service delivery at or local content to promote market access by local entrepreneurs. the local level. Practical and needs-based solutions should be Public works can also be designed with the specific purpose emphasized throughout the process. of creating local jobs. The risk of misuse of public investment • Accountability and oversight institutions are often absent in in FCV situations adds to standard operational risks. Public FCV countries. Newly rebuilt institutions should be encouraged facilities may be captured, and public funds may be extorted from to play their key role in demanding the proper selection and contractors—a common practice to fuel wartime economies. In implementation of PIPs. addition, property rights may be denied in the reconstruction process. Such risks call for the strengthening of political, PIM and PPP Action Plans governance, and fiduciary risk management. • Technical and institutional improvements in PIM must go together. Building peace by restoring the social contract. Ongoing • In the early years of rebuilding, the focus can be on building a conflicts reflect aggravated public distrust of government and consensus around national priorities and developing strategies social discord. The United Nations and World Bank joint report on for public investment to define priority areas and guide Pathways for Peace: Inclusive Approaches to Preventing Violent investment choices (including quick wins) in all sectors, thus Conflict stresses that grievances prompted by “perceptions of increasing the efficiency and effectiveness of the investment injustice deriving from social, economic, and political exclusion” process. have “consistently recurred in violent conflict in various contexts.” • PIM improvements should contribute to the integration of all 5 GOVERNANCE NOTES MARCH 2019 No.13 line ministries and independent budget agencies in sectoral the implementation process based on two aspects. The first strategic plans, as well as procurement processes, budget is the incentive that the MFD approach can provide for policy approvals, and execution of public infrastructure projects. reforms and new financing tools to address market failures This will help establish a solid foundation for intersectoral that may impede the mobilization of new sources of financing coordination and budget integration in line with FCV country and capital investment. The second is the impact that MFD priorities. can have on improved governance and partnerships for policy • Procurement is a major aspect of every government business implementation. Utilizing the MFD approach can also lead process and has a profound economic impact. Inefficiencies in to much-needed improvement and coordination between the procurement system can have significant adverse effects development partners. Effective collaboration and partnerships at the macro level. They can also negatively impact the cost- are even more critical in FCV countries. They can help leverage benefit rationale of investment decisions. In addition, such scarce resources to meet the challenges of rebuilding the inefficiencies can undermine accountability and citizen trust in country, increasing economic growth, promoting private sector government actions and development plans. development, and creating jobs. • MFD should play an important role as a “change driver” during REFERENCES Ministry of Finance. 2017. Methodology for Pre-Selection of Public Investment Projects in Afghanistan. Kabul, Afghanistan: Ministry of Finance. Mousley, Peter J., Patricia Haydamous, Dalia Wahba, and Mena Cammett. Mashreq Maximizing Finance for Development (MFD) Strategy 2019-2021. Washington, DC: World Bank Group. Rajaram, Anand, Tuan Minh Le, Kai Kaiser, Jay-Hyung Kim, and Jonas Frank. 2014. The Power of Public Investment Management: Transforming Resources into Assets for Growth. Directions in Development--Public Sector Governance. Washington, DC: World Bank Group. World Bank. 2017a. Governance and the World Bank Group Year in Review 2017: Foundations and Frontiers. Washington, DC: World Bank Group. ———. 2017b. Methodology for Pre-Selection of Public Investment Projects in Afghanistan. Washington, DC: World Bank. ———. 2017c. “Iraq Third Programmatic DPF on Expenditure Rationalization, Energy Efficiency, and SoE Governance.” Prior Action #3: PIM Reform, World Bank, Washington, DC. United Nations and World Bank. 2018. Pathways for Peace: Inclusive Approaches to Preventing Violent Conflict. Washington, DC: World Bank. GOVERNANCE GLOBAL PRACTICE Guiding Results through Public Institutions Governance Notes captures knowledge derived from World Bank engagements and technical and financial assistance requests. The views expressed are those of the authors and do not necessarily reflect the views of the World Bank. For more information, contact: askgov@worldbank.org 6