Publication:
World Bank Policy Lending and the Quality of Public Sector Governance

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dc.contributor.authorSmets, Lodewijk
dc.contributor.authorKnack, Stephen
dc.date.accessioned2015-06-02T20:47:56Z
dc.date.available2015-06-02T20:47:56Z
dc.date.issued2015-05
dc.description.abstractThis study investigates the impact of World Bank development policy lending for public sector governance on the quality of public sector management and institutions. The World Bank’s Country Policy and Institutional Assessments (CPIA) are used to measure the latter, the study considers only policy conditions targeted at improvements in those areas. The analysis uses a comprehensive country-year panel data set of aid receiving-countries and finds a significant and inverse U-shaped effect of public sector conditions on the quality of public sector governance. For most observed values in the data, the impact is positive, but it turns negative beyond a value of 80 conditions. At that point, the predicted CPIA score is about 0.25 point (0.3 standard deviation) higher than with zero conditions. For most observations, the number of cumulative conditions is below 80, so the estimated effect of more conditions is generally positive. The analysis corrects for potential endogeneity and shows that the results are robust to sample restrictions, the use of an alternative governance measure, and the inclusion of an extended set of control variables. Falsification tests are also consistent with a causal interpretation from conditions to quality of public sector governance. The paper shows that conditions related to public financial management and tax reforms are more effective than those related to anti-corruption or civil service and administrative reform, where progress requires changing the behavior of a larger set of “deconcentrated” actors. The paper concludes by describing some innovative ideas in the Bank’s ambitious new public sector management strategy that could improve the effectiveness of its support for public sector governance reform.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/05/24491011/world-bank-policy-lending-quality-public-sector-governance
dc.identifier.doi10.1596/1813-9450-7267
dc.identifier.urihttps://hdl.handle.net/10986/22001
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7267
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectEMPLOYMENT
dc.subjectSTRUCTURAL ADJUSTMENT
dc.subjectECONOMIC GROWTH
dc.subjectACCOUNTING
dc.subjectREVENUE MOBILIZATION
dc.subjectBRIBERY
dc.subjectPOLITICS
dc.subjectFINANCIAL MANAGEMENT
dc.subjectAUTONOMY
dc.subjectINCOME
dc.subjectINTEREST
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectLAWS
dc.subjectVESTED INTERESTS
dc.subjectGUARANTEES
dc.subjectPUBLIC SECTOR
dc.subjectINDUSTRY
dc.subjectPROPERTY RIGHTS
dc.subjectPOLITICAL RIGHTS
dc.subjectGOOD GOVERNANCE
dc.subjectSERVICES
dc.subjectTAX COLLECTION
dc.subjectPUBLIC SERVICES
dc.subjectPOLITICAL ECONOMY
dc.subjectFISCAL POLICY
dc.subjectHUMAN RESOURCE MANAGEMENT
dc.subjectGOVERNANCE PROBLEMS
dc.subjectPROJECTS
dc.subjectCORRUPTION
dc.subjectELECTORAL SYSTEMS
dc.subjectBUREAUCRACY
dc.subjectAUDITS
dc.subjectMACROECONOMIC STABILITY
dc.subjectINSTITUTIONS
dc.subjectHUMAN RESOURCE
dc.subjectPUBLIC POLICY
dc.subjectGOVERNANCE QUALITY
dc.subjectADMINISTRATIVE REFORM
dc.subjectPER CAPITA INCOME
dc.subjectPOLITICAL INSTITUTIONS
dc.subjectCONTRACT ENFORCEMENT
dc.subjectTRANSPORT
dc.subjectFOREIGN AID
dc.subjectCIVIL SOCIETY
dc.subjectDEMOCRACY
dc.subjectECONOMETRICS
dc.subjectINTERNAL ACCOUNTABILITY
dc.subjectPRODUCTIVITY
dc.subjectTRANSFERS
dc.subjectCRITERIA
dc.subjectDEBT
dc.subjectMEASUREMENT ERROR
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectLEGISLATION
dc.subjectGOVERNANCE INDICATORS
dc.subjectINDICATORS
dc.subjectINCOME LEVELS
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectECONOMIC REFORMS
dc.subjectECONOMIC POLICIES
dc.subjectLABOR
dc.subjectLOANS
dc.subjectTAX REVENUES
dc.subjectDEMOCRATIC REGIMES
dc.subjectSOCIAL DEVELOPMENT
dc.subjectRULE OF LAW
dc.subjectGOVERNANCE REFORMS
dc.subjectDIAGNOSTIC INSTRUMENTS
dc.subjectGRANTS
dc.subjectINSTITUTIONAL REFORMS
dc.subjectEQUITY
dc.subjectPUBLIC SECTOR GOVERNANCE
dc.subjectACCOUNTABILITY
dc.subjectECONOMIC PERFORMANCE
dc.subjectTRANSPARENCY
dc.subjectGOVERNANCE ISSUES
dc.subjectREVERSE CAUSALITY
dc.subjectPARTICIPATION
dc.subjectPUBLIC POLICIES
dc.subjectVALUE
dc.subjectACCESS TO INFORMATION LAW
dc.subjectBANK
dc.subjectMACROECONOMICS
dc.subjectPOLICY OUTCOMES
dc.subjectPROPERTY
dc.subjectMEASUREMENT
dc.subjectAID DEPENDENCE
dc.subjectREGULATORY QUALITY
dc.subjectINTERNATIONAL COMMUNITY
dc.subjectREGULATION
dc.subjectURBAN DEVELOPMENT
dc.subjectCOUNTRY DATA
dc.subjectGOVERNANCE INDICATOR
dc.subjectPOLITICAL PARTIES
dc.subjectACCOUNTING SYSTEMS
dc.subjectSOCIAL POLICIES
dc.subjectGOVERNANCE
dc.subjectINSTITUTIONAL REFORM
dc.subjectECONOMIC DEVELOPMENT
dc.subjectCONTROLLING CORRUPTION
dc.subjectPOLITICAL FREEDOMS
dc.subjectSTATISTICS
dc.subjectRISK
dc.subjectPUBLIC SECTOR PERFORMANCE
dc.subjectTAX SYSTEM
dc.subjectPOVERTY
dc.subjectCRISES
dc.subjectCOUNTRY CHARACTERISTICS
dc.subjectTAX ADMINISTRATION
dc.subjectDECENTRALIZATION
dc.subjectREVENUE
dc.subjectRISK MANAGEMENT
dc.subjectGOVERNANCE REFORM
dc.subjectLENDING
dc.subjectCOMMUNITY
dc.subjectBUREAUCRATIC QUALITY
dc.subjectMACROECONOMIC POLICIES
dc.subjectPUBLIC SECTOR MANAGEMENT
dc.subjectCOLLECTIVE ACTION
dc.subjectGOVERNMENTS
dc.subjectCIVIL SERVICE
dc.subjectPOLITICAL LEADERS
dc.subjectSERVICE
dc.subjectHUMAN DEVELOPMENT
dc.subjectGROWTH
dc.titleWorld Bank Policy Lending and the Quality of Public Sector Governanceen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleWorld Bank Policy Lending and the Quality of Public Sector Governance
okr.date.disclosure2015-05-15
okr.date.doiregistration2025-04-10T09:50:05.195392Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2015/05/24491011/world-bank-policy-lending-quality-public-sector-governance
okr.globalpracticeGovernance
okr.guid358581467986279357
okr.identifier.doi10.1596/1813-9450-7267
okr.identifier.externaldocumentum090224b082e8a940_1_0
okr.identifier.internaldocumentum24491011
okr.identifier.reportWPS7267
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/05/15/090224b082e8a940/1_0/Rendered/PDF/World0Bank0pol0ic0sector0governance.pdfen
okr.topicPublic Sector Corruption Anticorruption Measures
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicGovernance::Governance Indicators
okr.topicGovernance::National Governance
okr.topicLaw and Development::Corruption & Anticorruption Law
okr.topicPublic Sector Development
okr.unitHuman Development and Public Services Team, Development Research Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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