Other Public Sector Study

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    Federal Democratic Republic of Ethiopia: Evaluation of MDGs Specific Purpose Grant to Regions
    (World Bank, Washington, DC, 2016-03-29) World Bank
    Ethiopia is a highly decentralized country. Presently, sub-national government taxes and revenues account for about 28 percent of general taxes and revenues, and sub-national expenditures amount to 51 percent of general government expenditures. The ensuing vertical mismatch is bridged by grants from the Federal government to the regions. Presently, these grants account for 57 percent of sub-national expenditures1. For many years, these grants consisted mostly of a block grant (the Federal General Purpose Grant) given without any strings attached, which means the regions could use it as they wished. The rest of the report is organized as follows. Section two provides the policy context that is the information, data, evolutions, etc. specific to Ethiopia, which are necessary to understand and interpret the MDGs grant policy. Section three present and discusses the policy content that is the components of the policy previously identified. Section four is a policy assessment, which utilizes the evaluation framework proposed above to analyze the relationships between the various components of the policy, and discuss its efficiency, its effectiveness and its success. Section five is a conclusion that summarizes the analysis, and attempts, prudently and modestly, to outline some potential avenues for future action.
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    South East Europe Municipal Finance Review : Local Government Finance in the Western Balkans
    (Washington, DC, 2013-09) World Bank
    This report addresses the limited access to local governments of data and knowledge of municipal finance issues in South East Europe (SEE). The objective of the analytical work under the SEE Municipal Finance Review (MFR) aims to (i) contribute to improved understanding of local government management and finance in the SEE Region; and (ii) contribute to improving the quality and consistency of key municipal finance data for improved evidence based policy making. The analysis presented in this report comprises the first attempt to review and analyze a regional set of disaggregated sub-national finance data in the SEE Region. Main findings of the MFR are presented in this report. Following an introductory chapter, chapter 2 provides an overview of the decentralization framework in the SEE Region, including on the administrative and political structure of sub-national governments, their population size and distribution, and the service functions assigned to local governments. Chapter 3 explains in more detail the local government finance framework. This includes an overview of the structure and composition of sub-national finances, in particular (i) revenue and expenditure assignments; (ii) transfers and intergovernmental fiscal relations; and (iii) the evolving framework and realities of sub-national borrowing and debt. Chapter 4 provides a summary of the key trends and findings from the cross-country, regional analysis, complemented by detailed analysis of the disaggregated datasets, where available. Finally, Chapter 5 summarizes conclusions and provides some recommendations for a possible way forward. In the medium to long term, access to municipal finance information would contribute to increasing transparency and accountability of local governments, improving revenue collection and expenditure performance, optimizing budget allocation procedures, and strengthen local authorities' role and position in intergovernmental fiscal considerations and negotiations in the SEE countries.
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    PFM Design under Capacity Constraints : Planning Public Financial Management Reforms in Pacific Island Countries
    (World Bank, Washington, DC, 2013-07) World Bank ; International Monetary Fund
    This note is intended to inform Public Financial Management (PFM) reform in small Pacific Island Countries (PICs). PFM systems in PIC contexts are often very different from the sophisticated and comprehensive systems operating in larger, wealthier countries. The authors give two key messages. Firstly, PFM capacity should be prioritized to areas that matter most in achieving development outcomes, and reforms should be intended to address specific, identified, problems, rather than to achieve blueprint good practice standards. Secondly, with small numbers of staff and high staff turnover limiting potential for sustainable gains from standard capacity building solutions (such as training programs and workshops), broader options for meeting capacity gaps should be considered, including accessing ongoing support for specialized tasks or even the wholesale outsourcing of certain functions. The three main sections of this note are as follows: (i) how to plan PFM reforms, including through the development of PFM roadmaps; (ii) how to prioritize limited PFM reform capacity to address the most pressing constraints to development; and (iii) how to access additional capacity to implement and sustain required PFM reforms.
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    Tax Reform in Vietnam: Toward a More Efficient and Equitable System
    (World Bank, Washington, DC, 2011-09-30) Shukla, Gangadha Prasad ; Pham, Duc Minh ; Engelschalk, Michael ; Le, Tuan Minh ; Shukla, Gangadha Prasad ; Pham, Duc Minh ; Engelschalk, Michael ; Le, Tuan Minh
    In 2010, after two decades of rapid economic growth, Vietnam passed the threshold to become a lower-middle-income economy. Sustained market-oriented reforms combined with intensive efforts to integrate into the world economy are among the key drivers of this achievement. The reform of tax policy and administration has been a vital part of this transition. This is leading to a fundamental change in the composition of taxpayers, from large state-owned enterprises (SOEs) and foreign-invested companies to a myriad of small and medium private enterprises. Economic transition is also leading to an equally important change in the sources of government revenue, away from cross-border trade-related taxes and revenue collection from crude oil toward a greater share of domestic tax revenue, in particular taxation of business profits, labor income, and capital gains on land. However, completing the transition to a market economy will require changes going beyond tax collection and administration procedures, and will involve changes to the tax instruments themselves. At the end of this process, Vietnam should have a set of taxes that is simple and transparent, secures a stable flow of revenues for the government, encourages an efficient allocation of resources, and does not risk constituting a source of inequality or unfairness. The purpose of the series of studies in this volume is to shed light on the issues Vietnam will be facing in the process of reforming its tax policy and administration. The studies are also expected to lead to concrete policy recommendations contributing to the preparation of key policies and legislative documents to ensure the achievement of the state budget revenue target and other tax administration reform targets in the SEDP 2011-2015. It is expected that the individual studies in this series will become useful inputs into the debate surrounding the issuance of new laws and regulations. It is also hoped that the volume will support the reform momentum in the tax policy area, leading to increased efficiency, transparency, and equity.
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    Colombia - Programmatic Strategic Engagement on Public Sector Management and Governance : Concept Note
    (Washington, DC, 2011-03-14) World Bank
    This concept note presents the strategic engagement of the World Bank in the areas of public sector management and governance in Colombia. It describes the short and medium term approach through which the Bank will provide support to the country on those areas of reform, as well as their links and synergies with other sectors activities. It also provides a summary of the Bank's public sector management and governance recent activities and their links with the program proposed by this strategy. This concept note lays out the strategy and program of financial support, knowledge and convening services to continue supporting the Government's public sector reform agenda in a demand-driven and flexible manner. The program aims to contribute to improve sustained and inclusive growth and competitiveness through strengthened government's management and improved service delivery. Its objectives are aligned with the National Development Plan (NDP) pillars and cross-cutting themes of good governance and regional development and integration, as well the Country Partnership Strategy (CPS) outcomes. The remainder of this note is structured as follows: (i) section two summarizes the trend public sector reforms have been following in Colombia; (ii) section three provides an overview of the trajectory the reform key National Government Management Institutions (NGMI) has followed in Colombia, summarizing the current status of Government's efforts in this area and outlining the pending policy reform agenda; (iii) section four presents a review of past Bank engagement in NGMI' s reforms and a description of the strategy to respond to the Government's priorities and pending reform agenda, including key expected outputs; (iv) section five provides an overview of the trajectory decentralization reform has followed in Colombia, summarizing the current status of Government's efforts in this area and outlining the pending policy reform agenda; (v) section six presents a review of past Bank engagement in decentralization reforms and a description of the strategy to respond to the Government's priorities and pending reform agenda, including key expected outputs; and, (vi) section seven contains a resource section, describing the timeline of proposed activities, budget, team composition, and processes for quality review, monitoring and evaluation.
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    Implementing Results Based Management in Thailand
    (Washington, DC, 2011-01) World Bank
    Thailand has been pursuing the implementation of results based management techniques in the public sector for over a decade. Leading this task is the Office of the Public Sector Development Commission (OPDC) which has been supporting various agencies and departments in undertaking a wide variety of results based management reforms, including key performance indicators, balanced scorecards, and individual performance bonuses, among others. This report summarizes the results of a two week fact finding mission and a one day workshop conducted by the Office of the Public Sector Development Commission (OPDC) of the Prime Minister's office in collaboration with the World Bank's Public Sector Performance Global Expert Team (PSP-GET) held on September 24, 2010 in Bangkok, Thailand. This report covers the main areas to consider in implementing a results based management system. The report provides an overview of Thailand's Results Based Management (RBM) system, with an emphasis on lessons from international experience in leveraging performance information to deliver results. Chapters on how to link performance with planning and budgeting, as well as an overview of incentives to improve performance are included. Each chapter is loosely structured in the following way: issues identified during discussions; relevant lessons from international experiences; and overall recommendations and findings of the PSP-GET.
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    Democratic Republic of Congo - The Impact of the 'Decoupage' : Executive Summary
    (World Bank, 2010-03-01) World Bank
    In its new Constitution, proclaimed on February 18, 2006, the Democratic Republic of the Congo (DRC) committed itself to reforming its administrative and territorial architecture. Following this reform, the country, which now has 11 provinces, will be subdivided into 26 provinces. According to constitutional provisions, the transition from 11 to 26 provinces is to take place within three years after the establishment of the third Republic's main governing institutions. The Senate, the final institution to be established, was set up in May 2007, and the country's new administrative structure should be implemented by May 2010 at the latest. The aim of this study, which was carried out at the request of the Government of the DRC and jointly financed by the World Bank, the Belgian Development Cooperation, the European Commission, and the United Nations Development Program (UNDP), is an in depth analysis of the main aspects of the decoupage process. It includes an assessment of the administrative and institutional capacity of the new provinces and an examination of their financial and budgetary sustainability as well as of the economics of the process. The results of the study were presented to a validation workshop held in Kinshasa on July 16, 2008. The workshop was organized by the Government of the DRC, and it was attended by representatives of the President of the Republic, the Prime Minister, the National Assembly, the Senate, the Ministries of Decentralization, finance, budgeting, and planning, representatives from the various provinces involved in the decoupage process, and development partners including the World Bank, UNDP, the Belgian Development Cooperation, and the European Union. At the end of the workshop, recommendations for rationalizing the decoupage process in the DRC were made with a view to maximizing efficiency. These recommendations are listed at the end of each chapter in this study.
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    Nigeria - Employment and Growth Study
    (World Bank, 2009-11-13) World Bank
    Since 1999, Nigeria has made significant progress in economic reform. Sound macroeconomic policies, combined with structural reforms aimed at increasing the supply responsiveness of the economy, ushered in sustained high growth, driven by the non-oil economy. The goal of this book is to shed light on the extent to which Nigeria's much improved economic performance has impacted the labor market, and to develop a growth strategy that could enhance the employment intensity of growth. The report consists of six chapters. Chapter one provides an overview of the book's main findings, reviews Nigeria's growth performance from 2001 to 2007, and addresses the question of the sustainability of that growth performance. Chapter two analyzes the evolution of the labor market since 1999. The analysis focuses on the share of the formal and informal sectors in employment; the development of incomes; and the unemployment rate. Chapter three addresses the question of what Nigeria could do to increase the availability of quality jobs and reduce rising youth unemployment. Chapters four discusses Nigeria's policy and investment environment. Chapter five proposes strategies for skills development; and Chapter six analyzes the effects of restrictive trade policies.
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    Pakistan - Tax Policy Report : Tapping Tax Bases for Development - Full Report
    (World Bank, 2009-07-01) World Bank
    The main message of this report is that Pakistan can take measures to increase the tax to gross domestic product (GDP) ratio by around 3.5 percentage points over the next five years. In order to ensure a healthy long-run economic development, Pakistan needs to embrace substantial changes in tax policy aimed at increasing the buoyancy of the tax system, broadening the tax bases, reducing distortions and phasing out exemptions. Such tax reforms are also required to deal with the risks stemming from sustained large budget deficits. Failing to act sooner rather than later, only makes the problem more difficult to address without considerable instability, raises the probability of fiscal and financial disarray at some point in the future, and runs the risks of further constraining policy flexibility in future. This report highlights design ingredients for a comprehensive reform of tax policy in Pakistan. In the final analysis, the success of tax reform will depend less on the mechanism of taxation and more on the politics of taxation. Beyond adequate administrative resources and an implementation strategy, this will require a clear political recognition of the importance of the task and the willingness to persist with tax reform over the long haul.
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    Pakistan - Tax Policy Report : Tapping Tax Bases for Development - Summary Report
    (World Bank, 2009-07-01) World Bank
    The main message of this report is that Pakistan can take measures to increase the tax to gross domestic product (GDP) ratio by around 3.5 percentage points over the next five years. In order to ensure a healthy long-run economic development, Pakistan needs to embrace substantial changes in tax policy aimed at increasing the buoyancy of the tax system, broadening the tax bases, reducing distortions and phasing out exemptions. Such tax reforms are also required to deal with the risks stemming from sustained large budget deficits. Failing to act sooner rather than later, only makes the problem more difficult to address without considerable instability, raises the probability of fiscal and financial disarray at some point in the future, and runs the risks of further constraining policy flexibility in future. This report highlights design ingredients for a comprehensive reform of tax policy in Pakistan. In the final analysis, the success of tax reform will depend less on the mechanism of taxation and more on the politics of taxation. Beyond adequate administrative resources and an implementation strategy, this will require a clear political recognition of the importance of the task and the willingness to persist with tax reform over the long haul.