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The World Region

Toward next-generation performance budgeting

Donald Moynihan's picture
 Photo © Dominic Chavez/World Bank


Performance budgeting (PB) has a deep and enduring appeal. What government would not want to allocate resources in a way that fosters efficiency, effectiveness, transparency, and accountability? However, such aspirations have proven poor predictors of how performance data are actually used.

The potential benefits of identifying and tracking the goals of public spending are undeniable, but have often justified a default adoption of overly complex systems of questionable use. Faith in PB is sustained by a willingness to forget past negative experiences and assume that this time it will be different. Without a significant re-evaluation, PB’s history of disappointment seems likely also to be its future.

Rethinking governance for more effective policymaking

WDR Team's picture

We’ve all had those hallway conversations or coffee meetings or been privy to overhearing those chats… the ones where we have quick exchanges on why so many ‘best practice’ polices – such as those designed to reduce teacher absenteeism-- continually fail on implementation. Or why policies such as energy subsidies are so difficult to get rid of when they are universally recognized as regressive and encouraging inefficient energy use.

That’s where today’s launch of the 2017 World Development Report (WDR) on Governance and the Law led comes into play. The new report, co-directed by Luis-Felipe Lopez-Calva and Yongmei Zhou, starts by acknowledging that all countries share a similar set of development goals: to minimize the threat of violence, to promote growth, and to improve equity. But too often, carefully designed, sensible policies to achieve these objectives are not adopted or implemented—and when they are, they too often fall short of achieving their goals. The report argues that the development community needs to move beyond asking “what is the right policy?” and instead ask “what makes policies effective in achieving desired outcomes?” As this WDR suggests, the answer has to do with governance—that is, the process through which state and non-state actors interact to adopt and implement those policies.

11 charts from the 2017 World Development Report on Governance & the Law

Tariq Khokhar's picture

What makes government policies work in real life for the benefit of citizens? The answer put forward by World Development Report (WDR) 2017 is better governance – the ways in which governments and citizens work together to design and implement policies.

The report is a detailed exploration of a complex topic. I won’t be able to do it justice in a short blog – I’d encourage you to download the report and summary here.

What I will do though, is pull out a few of the charts and ideas I found most striking while reading through it – have a look below and let us know what you think.

Constitutions have proliferated since the late 18th century

Constitutions – fundamental principles or laws governing countries – have proliferated since the late 18th century. The growing numbers, especially since the 1940s, correspond to the postcolonial increase in the number of independent states, and more recently the breakup of the Soviet Union.

… but they are often replaced or amended

The WDR finds that the effectiveness of constitutions in constraining power through rules is mixed – the average lifespan of a constitution is 19 years, and in Latin America and eastern Europe it is a mere eight years.

Chart: Gender Quota Laws Have Spread Worldwide Since 1990

Tariq Khokhar's picture

Over the last 25 years, different forms of gender quotas for representation in national legislatures have spread globally. Out of 74 countries studied where gender quota laws were passed, the 2017 World Development Report finds that 26 had achieved the quotes, and as of 2016, 48 countries had yet to do so.

Read more in 11 charts from the 2017 World Development Report on Governance & The Law

Devolution of PPP enabling environment institutions: The leadership cascade effect

David Baxter's picture



I have seen several trends emerge from discussions I have had over the past year with PPP public sector practitioners about the ability of their government institutions to promote PPP best practices and enhance enabling environments:

Stronger together: Stepping up our partnerships with the UN

Hartwig Schafer's picture

A few years ago, West Africa was gripped by the Ebola outbreak. The onset of the virus devastated communities and weakened the economies of Guinea, Liberia, and Sierra Leone.

Ebola moved quickly and an immediate response by development partners was badly needed. The governments of the three affected countries requested assistance from UN agencies and the World Bank to lead a coordinated effort to curb the epidemic. The Bank responded by restructuring ongoing health projects to free up resources for the governments to quickly contract UN agencies.  

Chart: Commodity Prices Projected to Increase in 2017

Tariq Khokhar's picture

Energy and non-energy commodity price indexes are projected to increase by 26 and 3 percent respectively in 2017. The Agricultural Price Index is expected to remain stable. Prices for industrial commodities such as energy and metals appear to have bottomed out in 2016, and are forecast to rise substantially this year due to strong demand and tight supplies. Read more in Commodity Markets Outlook.
 

Education as a development priority at the global, regional, and country levels

Svetlana Markova's picture
“Education” is at the top of the world’s development agenda, the UN Sustainable Development Goals, and the focus of the upcoming 2018 World Development Report of the World Bank.  The World Bank monitors views of development experts around the globe and finds consistently that “education” is perceived as key to development at different levels.
 
In the past five years, the World Bank’s Country Opinion Survey Program surveyed more than 25 thousand opinion leaders in the field of development in nearly all client countries across the globe. In some countries the surveys were conducted two or even three times during 2012-2016.
 
"What is the most important development priority for your country?"[1] was one of the questions to representatives of national and local governments, multilateral/bilateral agencies, media, academia, the private sector, and civil society in developing countries.
 
At the global level, -- where 57 million children in the world still remain out of school[2], -- “education” has emerged amongst survey respondents as one of the top two development priorities across the regions.

Percentage and number of opinion leaders seeing “education” as a top development priority by region (123 developing countries, 2012-2016).​

 

Investment slump clouds growth prospects

Franziska Ohnsorge's picture

Investment growth in emerging market and developing economies has tumbled from 10 percent in 2010 to 3.4 percent in 2015 and was below its long-term average in nearly 70 percent of emerging an developing economies in 2015. This slowing trend is expected to persist, and is occurring despite large unmet investment needs, including substantial gaps in infrastructure, education, and health systems.

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

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


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

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


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