Institutional and Governance Review

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CPIA Africa, September 2023: Policies for Economic Resilience in a Turbulent World

(Washington, DC: World Bank, 2023-09-12) World Bank

The Country Policy and Institutional Assessment (CPIA) for Africa is an annual diagnostic tool for Sub-Saharan African countries that are eligible for financing from the International Development Association (IDA), the part of the World Bank that helps the world’s poorest countries. The CPIA Africa 2023 report provides an assessment of the quality of policies and institutions in all 39 IDA-eligible countries in Sub-Saharan Africa for calendar year 2022. The average overall CPIA score for Sub-Saharan Africa remained unchanged at 3.1 in 2022. Economic and social resilience continues to be tested in all countries in Sub-Saharan Africa amid tight global credit markets, as institutional capacity for restoring stability and delivering sustained growth remains a challenge. Such resilience is also fundamental to responding to global climate change and the expected market shifts as the world economy transitions to green energy. The recovery of economic activity in the region following the slowdown caused by COVID-19 has been multispeed, with wide variation across countries. Global events that diverted attention away from longer-term development priorities marked 2022. Inflation was the predominant form in which international pressures translated to domestic economies in Sub-Saharan Africa, resulting in stress on social policies and government budgets, on account of divergent responses by governments and private sector competition. In some countries, this has led to significant stress on debt sustainability, highlighting the importance of debt management, budgetary oversight, and financial soundness. An opportunity for regrouping on policy reforms arose in the second half of 2022, as gas prices declined after a mild European winter and China lifted health-related restrictions. Despite global economic challenges, more countries in Sub-Saharan Africa saw improvements in their overall CPIA scores compared to the previous year. In Western and Central Africa (AFW), the overall score increased for eight countries—Benin, Cabo Verde, Côte d’Ivoire, The Gambia, Guinea, Guinea-Bissau, the Republic of Congo, and Togo. The overall score increased for four countries in Eastern and Southern Africa (AFE)—Burundi, the Democratic Republic of Congo, Mozambique, and Zambia. In contrast, the overall score decreased for eight countries—Chad, the Comoros, Eritrea, Ethiopia, Ghana, Malawi, São Tomé and Príncipe, and Sudan. The countries with improved scores made notable advancements in the economic management, policies for social inclusion, and governance clusters. Conversely, the countries with declining scores faced economic management and governance challenges. For the most part, the countries that received downgrades were positioned toward the lower end of the scale, while the upgraded countries generally had overall scores above 3, indicating a growing divergence in scores across the region in 2022.
CPIA Africa, October 2022: Assessing Africa’s Policies and Institutions

(Washington, DC, 2022-10) World Bank

The Country Policy and Institutional Assessment (CPIA) Africa 2022 report provides an assessment of the quality of policies and institutions for the calendar year 2021 in all 39 countries in Sub-Saharan Africa that are International Development Association (IDA)–eligible. The overall average score for these countries remained unchanged from the previous year at 3.1. Similarly, no changes were observed at the subregional level, where average scores were unchanged at 3.2 and 3.0 for West and Central Africa and East and Southern Africa, respectively. However, at the country level, the overall CPIA scores changed in 11 countries, including an increase in seven countries and a decline in four. Among the countries that increased their CPIA scores, nearly 70 percent has done it on account of better policies for social inclusion and equity. Among the four countries with decreased CPIA scores, three are assessed with weakened performance in macroeconomic management. Countries with below average scores (under 3.0) are mostly fragile and conflict-affected cases. Section 1 of this report evaluates the impact of the pandemic on economic performance in Sub-Saharan Africa’s IDA-eligible countries, particularly focusing on key macroeconomic outcomes. Section 2 of the report presents the CPIA assessment results by clusters, by criteria, as well as by countries, while distinguishing between fragile and non-fragile countries. Section 3 provides the individual country CPIA pages.
CPIA Africa, November 2021: Assessing Africa’s Policies and Institutions

(World Bank, Washington, DC, 2021-11) World Bank

The Country Policy and Institutional Assessment (CPIA) 2021 Africa report provides an assessment of the quality of policies and institutions of International Development Association (IDA); eligible countries in Sub-Saharan Africa in calendar year 2020, at the height of the COVID-19 pandemic. The report analyzes the CPIA scores for 2020 to assess the extent to which the policies and institutions of the region's IDA countries are fostering sustainable growth, poverty reduction, and the effective utilization of development resources. The CPIA scores quantify the level of performance of each country against 16 criteria that represent the policy and institutional arrangements of an effective poverty reduction and growth strategy. The criteria are grouped into four clusters: economic management, structural policies, policies for social inclusion and equity, and public sector management and institutions. Countries are rated on a scale between 1 and 6, with high and rising scores signifying stronger policy and institutional frameworks.
CPIA Africa: Strengthening Debt Management Capacity

(World Bank, Washington, DC, 2019-07-31) World Bank

The 2019 Africa Country Policy and Institutional Assessment (CPIA) report covers the period January to December 2018. Over this period, the average quality of policies and institutions in International Development Association (IDA)-eligible countries remained unchanged, amid decelerating growth across the region. The overall CPIA score for IDA countries in Sub-Saharan Africa was 3.1 in 2018, the same as 2017, reflecting the slow progress in improving the quality of policy and institutional frameworks in the region.
CPIA Africa, July 2018: Assessing Africa's Policies and Institutions

(World Bank, Washington, DC, 2018-07) World Bank Group

Favorable 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.
Actionable Regulatory Governance Indicators for UE Regions

(World Bank, Washington, DC, 2018-06-13) World Bank

The European Union’s Cohesion Policy is its biggest investment instrument. It supports the Europe 2020 strategy of smart, sustainable, and inclusive growth. With a budget of €351.8 billion for 2014–2020, the Cohesion Policy accounts for around one-third of the EU budget. The Cohesion Policy is primarily implemented through investments in EU regions and cities. Local and regional governments in the EU are responsible for more than half of all public investment. There is a growing focus on the importance of good governance to ensure effective implementation. The European Commission’s 6th Cohesion Policy report notes that governance problems not only delay the implementation of Cohesion Policy programs but also reduce the impact of these investments. The report states: ‘a lower standard of governance can affect the impact of Cohesion Policy both directly and indirectly. In the first place, it can reduce expenditure if programs fail to invest all the funding available. Secondly, it can lead to a less coherent or appropriate strategy for a country or region. Thirdly, it may lead to lower quality projects being selected for funding or to the best projects not applying for support at all. Fourthly, it may result in a lower leverage effect because the private sector is less willing to co-finance investment.’ The purpose of this report is to develop and test a set of actionable indicators for the regulatory frameworks of EU regions. Deregulatory measures focusing on ‘fixing broken regulations’ are a necessary and important element of investment climate reforms. However, gains from one-off initiatives aimed at cutting costs and procedures are often reversed if the responsible institutions, tools, and incentives are not changed.
Strengthening Somalia’s Systems Smartly: A Country Systems Risk Benefit Analysis

(World Bank and United Nations, 2017-12) Honig, Dan ; Cramer, Sarah

Despite the high-level commitments made on using country systems, Somalia continues to trail other fragile states in critical dimensions, including the proportion of aid delivered “On Budget.” Given the explicit focus on statebuilding in Somalia, the preferencing of short-term operational concerns over long-term government systems building appears to run counter to the international community’s stated objectives. No delivery modality is without risk; both country systems and alternative delivery channels have drawbacks. But these options also have differing strengths, depending on the type of project, sector or situation. In finding the right mix of tools, both government and international partners need to focus more on the statebuilding goals towards which they are jointly committed. This report examines donors’ decision-making about the use of country systems, exploring both the perceived and actual risks and benefits associated with it. It also articulates recommendations for improving and increasing the use of country systems, with relevance that extends beyond the Somali context. The report was financed with the generous support of the UN-WB Partnership Fund.
Building Institutional Capacity for Implementing the National Climate Change Strategy in Romania

(World Bank, Washington, DC, 2015-11) World Bank Group

Romania has already been affected by climate change. The IPCC projections indicate that the climate will warm up over this century at least in line with global projections and precipitation patterns will shift so as to make winters wetter and summers drier. Already, in 2007, Romania experienced the warmest year in two decades (average temperature 11.5° C against a 25 year average of 8.4° C) and the most severe drought in the last 60 years while in 2005 there were historic floods, which caused 76 deaths and significant property damage. The effects of these extreme weather events adversely affected the country through significant economic loss in agriculture, transport, energy supply, and water management. Consequently, mitigation and adaptation to climate change are increasingly important priorities for Romania. After the introduction chapter, the current situation as well as the CC commitments that Romania has undertaken are presented in chapter two. Chapter three provides the possible good practices that could provide inspiration for further reform. A contrast of the commitments with the current capacity and the available good practices has been substantiated in the analyses of capacity gaps that need to be addressed in chapter four. The next chapter provides the avenues for breaching those gaps and sustainably building CC capacity in order to ensure the smooth implementation of the strategy. Project management and financing is treated separately in chapter six since it has been an issue of particular concern and difficulty for the GoR. Finally, chapter seven sets out the basic elements of a public engagement campaign that will be essential for making CC a national issue present in the awareness of the public authorities, civil society and general public alike. A comprehensive list of the proposed measures and their time horizons can be found in annex one.
Federative Republic of Brazil: National Road Safety Capacity Review

(World Bank, Washington, DC, 2015-11-01) World Bank

As part of a long-term partnership between the World Bank and Brazil, the Federal Government of Brazil sought the World Bank’s assistance to review road safety management capacity in Brazil, building both on past experiences in the country and international best practices. This National Road Safety Management Capacity Review, therefore, was prepared by the World Bank, with the support of the Global Road Safety Facility (GRSF). The primary objective of the review is to evaluate the multi-sectoral capacity of road safety management in Brazil, identifying possible road safety challenges and presenting recommendations to address these challenges. The methodology of the review, in accordance with the guidelines of the World Bank Global Road Safety Facility, focused on examinations of key functional aspects of road safety, including institutions, legislation, financing, information, and capacities at all levels of government and among non-government actors. The review was prepared mainly based on interviews of key road safety stakeholders at the federal, state, and municipal levels, members of parliament, NGOs, and the private sector, in addition to direct inspection of roads and on-road behaviors, and the analysis of published research and reports on road safety. In addition, information and understanding gained from previous reviews of the states of São Paulo, Rio Grande do Sul, and Bahia were also incorporated.
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.