Vivek Srivastava GAC Secretariat World Bank

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1 Vivek Srivastava GAC Secretariat World Bank

2 The GAC Strategy The World Bank Board of Executive Directors approved a new Governance and Anticorruption strategy in March 2007, and an Implementation Plan for the strategy in October GAC as a tool for development effectiveness. Support countries build more capable and more accountable institutions for better development results Strengthen governance and anticorruption measures in Bank projects to better manage risks. Consultations held in 35 developing countries, 12 donor countries & four global events, reaching more than 3,200 people

3 Governance is Central to Development 3 It is about health services being delivered properly It is about teachers showing up at schools It is about the investment climate being predictable It is about less corruption in procurement It is about accountability in the use of public resources Governance is Everybody s Business

4 The 7 Principles 4 Based on the Bank s mandate to reduce poverty a capable and accountable state creates opportunities for the poor The Bank s GAC work must be country driven There is no one size fits all implementation is adapted to individual country circumstances The GAC strategy requires the Bank to remain engaged so that the poor do not pay twice The Bank aims to engage in its GAC work with a broad array of stakeholders Work to strengthen, not by-pass, country systems through stronger institutions The Bank will work with governments, donors, and other actors at the country and global levels to ensure a harmonized and coordinated approach

5 Progress since Sustained engagement and commitment to the agenda by the top leadership of the Bank Establishment of Communities of Practice, knowledge products and learning activities Steady mainstreaming of GAC initiatives in project design Development of a risk assessment framework Operational Risk Assessment Framework (ORAF) Numerous innovative initiatives in regions with regular and GPF funding (Annex slides)

6 Scope for Further Progress 6 Need to further push focus on Governance (transparency, accountability, broader institutional reforms) as a tool for development effectiveness (beyond merely addressing corruption in projects) Complexity of engaging in governance dialogue in different country contexts, with varying degrees of commitment to this agenda

7 Looking Ahead 7 The emphasis in the next three years will be on: Strengthening country institutions Strengthening and use of country systems More effective management of risk Focus on results: Stretching beyond internal change management Systematic learning Not a new strategy: a consolidation/deepening as the WBG seeks to address GAC issues more systematically and comprehensively

8 Board Paper with Five Companion Pieces 8 Public Sector Management Private Sector Justice Reform Procurement Demand for Good Governance

9 Web Link 9

10 10 Thank you

11 11 Annex Slides

12 GAC Innovations at the Operational Front-line 12 Public expenditure and financial management. 360 degree engagements on public financial management systems in South Asia, which combine investments in the systems with complementary support to all sides of the transactions including supreme audit institutions and parliamentary accounts committees. The SEPA system of enhanced transparency in government contracts implemented throughout Latin America, jointly with the Inter-American Development Bank. Local accountability. Assessments in Afghanistan of how local accountability structures actually work; how budgets flow in and out of districts; and how sectors can track expenditures at local levels. Strengthening the capacity of local councils in Uruguay to monitor and evaluate social policies -- and setting a userfriendly portal to disseminate the M&E results. Checks and balances, including anti-corruption. A 2010 Vietnam Development Report Modern Institutions, which sparked wide discussion of decentralization, access to information and independent oversight and, more broadly, the concepts of accountability to citizens and conflict of interest. Support in Uganda for the preparation and launch by the country s Inspector General/ Ombudsman of a First Annual Report on Corruption. In Brazil, training for journalists on detecting corruption in budgets, plus support to increase public access to information. E-governance. Supporting the development of universal ID systems in Bangladesh and India to change the way services are delivered; Using GPS systems to verify assets in remote and conflict affected areas

13 Examples of Good Practice Approaches to 13 GAC in Investment Projects Innovative approaches to using investment projects to strengthen country systems The Laos Nam Theun2 project, and a mining project in Papua New Guinea were used as catalysts for enhancing revenue and expenditure transparency more broadly in the countries Indonesia s community empowerment and education projects went beyond project-specific initiatives, and were used to improve monitoring of spending and outcomes in national government programs. Independent third party involvement Use of independent monitoring agents on procurement and budget execution in Afghanistan. Development of a third party monitoring framework for rural roads in India. Support of an NGO, Road Watch, in the Philippines to monitor roads-related procurement. Community empowerment The Yemen Social Fund has supported the construction and maintenance of classrooms (benefiting 684,000 children) and feeder roads (benefiting 532,000 people); the National Initiative for Human Development in Morocco has supported the establishment of 700 multi-stakeholder human development committees, and financed 18,000 subprojects (benefiting over 4.6 million people); the Palestine NGO project resulted in 74% of participating NGOs making their financial reports project (versus 14% prior to the project). Use of Governance filters upstream of new operations to assess risks and ways of mitigating them: The filters are used in the Philippines both to determine which new project ideas to greenlight, and to reinforce the role of country agencies in assessing the governance risks of their initiatives. The Albania governance filter is in its second generation with greater attention to sector-wide approaches, and enhanced attention to building key capacities among counterpart government agencies.