Institutional and Governance Review
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CPIA Africa, August 2020: Safeguarding Human Capital during and beyond COVID-19
(World Bank, Washington, DC, 2020-08-12) World BankThe 2020 Africa Country Policy and Institutional Assessment (CPIA) report covers the period from January to December 2019. The addition of Somalia brought the number of the region’s International Development Association (IDA)–eligible countries to 39. The overall CPIA score for the region’s 39 IDA-eligible countries came in at 3.1, the same as in the previous three years, in a context of moderating per capita growth. The average scores for most of the CPIA clusters trended down in 2019. While the average score for the economic management cluster was unchanged from last year’s assessment, the average scores for the other three clusters—structural policies, social inclusion, and public management and institutions—declined, indicating that the quality of policies and institutions in the region’s IDA countries weakened in 2019. The weakening of structural policies was reflected in the decline in the quality of trade policy, uneven improvements in the regulations affecting factor and product markets, and further deterioration of the financial sector performance. In the area of social inclusion, many countries experienced a decrease in the quality of service delivery that affects access to and quality of health and education services. In the broader area of governance, limited progress was made in strengthening property rights, and transparency and accountability. In addition, the quality of public administration declined, and financial management systems and revenue mobilization capacity weakened in many countries. -
Publication
CPIA Africa, July 2018: Assessing Africa's Policies and Institutions
(World Bank, Washington, DC, 2018-07) World Bank GroupFavorable global economic conditions supported a turnaround in economic activity in Sub-Saharan Africa in 2017, easing pressure on weak policy frameworks. Output growth rebounded to an estimated 2.6 percent after decelerating to 1.5 percent in 2016 amid challenging external and domestic conditions. Notwithstanding the recent upturn in economic activity, growth remained well below its pre–financial crisis average of around 5 percent; moreover, per capita growth was negative for a second consecutive year. Important near and longer term vulnerabilities remain in many of the region's economies: eroded policy buffers constrain the scope for countries to formulate an adequate policy response to adverse shocks; public debt relative to gross domestic product (GDP) is rising, with implications for debt sustainability; employment opportunities severely lag the growing labor force, and livelihoods and economic fortunes are still tied to commodity price shocks and production disruptions, underscoring the limited economic diversification in the region; and poverty is widespread. -
Publication
CPIA Africa, July 2017: Assessing Africa's Policies and Institutions
(World Bank, Washington, DC, 2017-07) World Bank GroupSub-Saharan Africa faced another challenging year in 2016. Economic activity continued to weaken, amid less favorable terms of trade, slowdown in global growth, and difficult domestic conditions. Output growth decelerated sharply to 1.3 percent, the slowest pace in over two decades and not as stellar as the average annual growth of around 5 percent in the pre-global financial crisis period of 1995–2008. Regional growth in 2016 was insufficient to raise gross domestic product (GDP) per capita, which contracted by 1.3 percent. At the same time, Sub-Saharan Africa's poverty rate remains high: 41 percent of the region's population—nearly 390 million people—were living in extreme poverty in 2013. Weak economic performance threatens gains in poverty reduction, and the region urgently needs to regain momentum on growth and make it more inclusive. -
Publication
CPIA Africa, June 2013: Assessing Africa's Policies and Institutions
(Washington, DC, 2013-06) World BankThis report is the second in a series of annual reports describing the progress African countries are making on strengthening the quality of policies and institutions that underpin development. It presents Country Policy and Institutional Assessment (CPIA) scores for the 39 African countries that are eligible for support from the International Development Association (IDA). The development literature identifies the components of the CPIA as being broadly relevant for sustaining growth and reducing poverty. The data provide some support for this association. All country groups exhibit similar patterns across the four CPIA clusters. The gap in scores between the macroeconomic management cluster and the governance cluster is just as pronounced for fragile as for non-fragile states. In contrast, the gap between the economic management cluster and the social policies and structural policies clusters is small. Overall, the macroeconomic policy stance in Sub-Saharan Africa was supportive of growth, with monetary policy focused on managing inflation and fiscal policy focused on pro-poor spending and infrastructure development. Inflation declined in 2012, thanks to a moderation in food and fuel prices and prudent monetary policy. However, an expansive fiscal policy translated into a weakening of fiscal balances. Debt levels also edged up, although they remained moderate. As the policy areas in this cluster are closely related, there tends to be co-movement in the scores for monetary and fiscal policy. -
Publication
Better Regulation for Growth: Governance Frameworks and Tools for Effective Regulatory Reform
(Washington, DC, 2010) International Finance Corporation ; Multilateral Investment Guarantee Agency ; World BankRegulatory reform has emerged as an important policy area in developing countries. For reforms to be beneficial, regulatory regimes need to be transparent, coherent, and comprehensive. They must establish appropriate institutional frameworks and liberalized business regulations; enforce competition policy and law; and open external and internal markets to trade and investment. This report examines the institutional set-up for and use of regulatory policy instruments in Zambia. It is one of five reports prepared on countries in East and Southern Africa (the others are on Kenya, Uganda, Rwanda, and Tanzania). The report is based on a review of public documents prepared by the government, donors, and the private sector, and on a limited number of interviews with key institutions and individuals.