Institutional and Governance Review

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  • Publication
    Governance Reforms of State-Owned Enterprises: Lessons from Four Case Studies (Egypt, Iraq, Morocco, and Tunisia)
    (Washington, DC, 2015-08) World Bank
    The state-owned enterprise (SOE) landscape has become increasingly diverse. There used to be some relatively well-defined criteria, but with the growing complexity of state participation in the economy, there is no longer a uniform definition, and especially because the definition of a SOE has always been country-specific. SOE reforms can have major positive impacts not only by reducing fiscal risks by decreasing hidden subsidies, direct transfers, and overstaffing, but also by strengthening competition and developing capital markets. SOE reforms in developing countries began in the 1960s because of the poor performance of many of the SOEs. The reform movement sought to strengthen the internal capacity of SOEs. To enrich the discussion about possible avenues for performance-enhancing SOE reforms, this report presents the main principles of good governance of SOEs with references to the Organization for Economic Co-operation and Development (OECD) guidelines on corporate governance of SOEs (OECD 2005). This document is divided into six parts: (1) an effective legal and regulatory framework for SOEs; (2) the state as an owner; (3) equitable treatment of shareholders; (4) relations with stakeholders; (5) transparency and disclosure; and (6) the responsibilities of the boards of SOEs.
  • Publication
    Regulatory Capacity Review of Rwanda
    (Washington, DC, 2010) International Finance Corporation; Multilateral Investment Guarantee Agency; World Bank
    Regulatory 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 analyses the institutional set-up and use of regulatory policy instruments in Rwanda. It is one of five reports prepared on countries in East and Southern Africa (the others are on Kenya, Uganda, Tanzania and Zambia), and represents an attempt to apply assessment tools and the framework developed by the Organization for Economic Cooperation and Development (OECD) in its work on regulatory capacity and performance to developing countries.
  • Publication
    Nicaragua : Institutional and Governance Review
    (Washington, DC, 2008-04) World Bank
    This document presents the main governance indicators for the country, as compiled by the World Bank Institute (WBI), and how are they used by international institutions in making decisions about assistance to Nicaragua. Although these indicators have weaknesses, they can provide a general indication of what are the priority areas for investigation. Accordingly, the present review concentrates on a few key areas where the Bank's expertise can add value and complement the efforts of other donors, including: (a) the regulatory system; (b) the system of property registries; and (c) two of the mechanisms for oversight and accountability of public sector performance (the Comptroller's Office and social accountability). The overall objective of the Institutional and Governance Review (IGR) is to examine the institutional and governance bottlenecks that stand in the way of more effective impact of key public policies, particularly poverty reduction policies. Since the report is limited in scope, the criteria to decide priority areas for review included: (a) issues that are of particular significance for better governance and institutionality; (b) issues that are particularly important in relation to poverty reduction; (c) issues where the Bank has a comparative advantage; and (d) issues where there would not be a duplication of effort with other donors or other studies undertaken by the Bank and where the IGR can add value.
  • Publication
    Republic of Paraguay Institutional and Governance Review Breaking with Tradition : Overcoming Institutional Impediments to Improve Public Sector Performance
    (Washington, DC, 2005-06) World Bank
    The present study uses examples from all three branches of Government - the Ministry of Finance, the ordinary courts, and the Congress in its budgetary role - to examine the institutional obstacles to their improved performance and the opportunities for targeted changes. It builds on recent analytic work done by Paraguayan academics and others, highlighting the historical and persisting impact of the traditional political practices. The arguments emphasize that the particularistic use of public resources has been and remains key to obtaining and holding political power in Paraguay. The study's goals were eminently practical to provide Paraguay's reformers with insights as to how they can escape a series of vicious circles. As they understand the basics quite well, the emphasis here was on their more detailed application at the organizational and sub-organizational levels.
  • Publication
    Devolution in Pakistan : Annex 1. Recent History
    (Washington, DC, 2004-09-01) World Bank
    The Devolved Service Delivery Study (DSD) is the product of an agreement between the World Bank, the Asian Development Bank, and the Department for International Development (the United Kingdom), in response to a request from the Government of Pakistan that the agencies review progress toward improving service delivery through decentralization. Pakistan's far-reaching devolution initiative has been designed with three broad and inter-related objectives in mind: To inject new blood into a political system considered to be the domain of historically entrenched interests; to provide positive measures enabling marginalized citizens--women, workers, peasants-to access formal politics; and to introduce a measure of stability into a turbulent political scene by creating a stronger line of accountability between new politicians and local electorates. Underpinning the political strategy were other technical objectives: improved delivery of social services; better determination and enforcement of property and labor rights and regulation of economic activities; and access to justice in the form of improved performance by local administrations, courts and police, with greater awareness of basic human rights protected under devolution. Based on an empirical study of 6 districts and 12 municipalities (Tehsil Municipal Administrations) (TMAs), this paper evaluates the extent to which the new structure has succeeded in creating the incentives necessary for local governments to achieve at least some of the service delivery objectives. This report notes that remarkable progress has been achieved. New local institutions with new structures for local government, new arrangements for intergovernmental sharing of resources, new electoral arrangements, new rules for government formation and dismissal and new opportunities for citizens to participate in the affairs of government have all been created. At the same time as the devolution initiative was being implemented, the government also implemented significant reforms in tax, trade, deregulation and privatization, the banking sector, anticorruption, restructuring federal and provincial legislatures and responding to gender concerns.
  • Publication
    From Patronage to a Professional State : Bolivia Institutional and Governance Review, Volume 1. Main Report
    (Washington, DC, 2000-08-25) World Bank
    The study, an institutional, and governance review of Bolivia, describes the transformation of the country's political economy as of the 1980s, the aim for consistent macroeconomic stability, and, the consolidation of the democratic political regime. However, despite a number of bold reforms to develop market-oriented systems, and in contrast with government efforts, the quality of public services remained low. Namely, because public sector reforms were not implemented, and because of symptomatic institutional weaknesses; for although assistance was provided to modernize the civil service, and improve public administration, the lack of government commitment to a changing program focus, precluded noticeable results. The current reform agenda has identified the need for state modernization, governance and accountability, and judicial reform, addressed within the National Integrity Plan, to combat corruption, and other symptoms of public sector dysfunction. The study presents a blunt vision of Bolivian public administration, through the absence of a functioning bureaucracy, reviewing the legal framework and organizational structure, with an emphasis on the "informality" of public administration, - a challenge for institutional development. But the deeper causes of poor public sector performance, lie on the patrimonial dynamics of party politics. Recommendations include parallel advances between public, and market sector reforms, reliable external controls, and strengthened capacity of the public sector.