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The World Bank Group. Working for a world free of poverty. Millennium Development Goals. Endorsed by 189 countries at the UN Millennium General Assembly in Sept 2000. Aim to halve the proportion of people in extreme poverty by 2015.
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The World Bank Group Working for a world free of poverty
Millennium Development Goals • Endorsed by 189 countries at the UN Millennium General Assembly in Sept 2000. • Aim to halve the proportion of people in extreme poverty by 2015. • Set targets for reductions in poverty, improvements in health and education, and protection of the environment.
Millennium Development Goals The Millennium Development Goals offer concrete targets for everyone to rally around in the global fight against poverty. But reaching the goals will require action from both developed and developing countries. Paul Wolfowitz, President, The World Bank Developed countries must boost foreign aid to the developing world, remove barriers to the exports of developing countries, encourage private investment, and make the benefits of science and technology available to all the world's peoples. Developing countries, meanwhile, must put in place the right economic policies, work to improve governance, invest in their people, and create an enabling environment that is conducive to growth and development.
Governance and Poverty Reduction • Governance impacts on poverty reduction • Weak governance has blighted development • Good governance: • requires robust government-wide systems to promote efficient and effective use of all public resources • a target under MDG 8 • Improving governance: a major challenge
Good Governance has many dimensions Citizens/Firms • Political Accountability • Political competition, broad-based political parties • Transparency & regulation of party financing • Disclosure of parliamentary votes • Formal Oversight Institutions • Independent, effective judiciary • Legislative oversight (PACs, PECs) • Independent oversight institutions (SAI) • Global initiatives: UN, OECD Convention, anti-money laundering • Civil Society & Media • Freedom of press, FOI • Civil society watchdogs • Report cards, client surveys • Effective Public Sector Management • Ethical leadership • Public finance management & procurement • Civil service meritocracy & adequate pay • Service delivery and regulatory agencies in sectors • Private Sector Interface • Streamlined regulation • Public-private dialogue • Extractive Industry Transparency • Corporate governance • Collective business associations Citizens/Firms Citizens/Firms • Decentralization and Local Participation • Decentralization with accountability • Community Driven Development (CDD) • Oversight by parent-teacher associations & user groups • Beneficiary participation in projects Outcomes: Services, Regulations, Corruption Citizens/Firms
Governance and Corruption Not the same thing! Governance The manner in which the State acquires and exercises its authority to provide public goods and services Corruption Using public office forprivate gain • Corruptionis an outcome– a consequence of the failure of accountability relationships in the governance system • Poor delivery of services and weak investment climate are other outcomes of bad governance
Corruption Poses 3 Key Risks Development Effectiveness Risk That corruption will undermine the impact of development efforts in general and in Bank-supported projects Fiduciary Risk Reputational Risk That Bank lending in countries with corrupt leaders will tarnish the Bank’s reputation That Bank resources will not be used for the purposes intended
Public Financial Management and Governance Improved PFM capacity is at the core of good governance and lies at the heart of achieving the MDGs: ensuring that public and donor resources are used efficiently, effectively and transparently for the intended purposes.
Diagnosis of Country PFM Systems Emerging cross-cutting issues?
PFM Diagnostics: Emerging Cross-cutting Issues • Incomplete Budget Information • Inadequate Accounting Systems • Obsolete Legal Framework • Ineffective Internal and External Audit • Poor dissemination of PFM information • Shortage of qualified PFM Professionals • Barriers to IFMIS Mostly due to weak capacity
How do we get there? Going Forward:From Diagnostics to Implementation From compliance to capacity development
Supporting and Strengthening SAIsWorld Bank Strategy: 3 Key Dimensions • Using policy dialogue, TA funding and Bank operations to strengthen SAI’s capacity and impact • Promoting SAIs global, regional and bilateral p’ships • Enhancing Bank staff skills to effectively support strengthening of SAIs
Guiding Principles: PFM Capacity Building • Country leadership and ownership • Tailor-made capacity development design • Comprehensive programme design and implementation • Coherent and coordinated donor support
Poverty Reduction: Global Challenge “ In this new century, millions of people in the world’s poorest countries remain imprisoned, enslaved and in chains. They are trapped in the prison of poverty. It is time to set them free.” Nelson Mandela International Global Call For Action (Make Poverty History) Campaign, London, February 2005