Aid and Governance With a focus on Africa Verena Fritz Sr Public - - PowerPoint PPT Presentation

Aid and Governance

With a focus on Africa

Verena Fritz Sr Public Sector Specialist World Bank Group

Context

• Major shifts with the end of the cold war
• Rising attention to and emphasis on governance

– Adoption of the Governance and Anti-Corruption strategy by the WB in 2007 – Principle not to ‘punish the poor twice’ in contexts with poor governance

• WBG has no direct link to or engagement on democratic governance

– Mandate and incentives are focused on working with any Gov’t

• Gradually growing attention to fragile states/fragility challenges

– 2011 WDR on Fragility and Conflict

• Growing emphasis on poverty reduction as a key goal

– Shift from structural adjustment to poverty reduction in the 1990s (PRSPs since 1999) – adoption of the ‘twin goals’ in 2013 (ending extreme poverty & achieving shared prosperity)

Governance in Africa – evolution of overall public sector lending and WBG engagement

Over time:

• Increase and peak in

2007

• Fluctuating since

then

• WB accounts for a

significant share of public sector financing

0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 3500.0

World Bank, total All other donors, total

All DPs, public sector lending & WB share

Other Gov and civil society All Donors, Total, Pub Sec Total

Composition of Governance and Civil society Assistance to AFR (last 20 years)

The WB in Africa relative to others

200 400 600 800 1000 1200 1400 1600 1800 2000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All Donors, Total World Bank, Total 200 400 600 800 1000 1200 1400 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All Donors, Total World Bank, Total

Public sector policy and public administration Public Financial Management

• In PFM, the WB is the dominant source of ODA
• Much less so for other public sector governance aspects
• Some areas explored: anti-corruption, DRM (v recent years only), decentralization, legal and justice sector
• Within PFM, a particular lending element has been the establishment and roll-out of FMIS systems
• More recently growing emphasis on ‘adjacent’ areas – procurement reforms, public investment management, DRM,

SOE governance

200 400 600 800 1000 1200 1400 1600 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

WB/PSR WB/PFM WB/decentral WB/anti-corr WB/DRM WB/legal

Composition of WBG public sector funding

Some positive results achieved in PFM performance

earliest PEFA available most recent PEFA data available Low income and African countries improved PFM systems as measured by PEFA (since 2005/206)

TMP SLB KIR PNG KHM VUT TUV TON WSM PHL IDN FJI THA TJK KGZ MDA GEO ARM ALB KSV UKR AZE SRB BLR MNE TUR KAZ RUS NIC GUY PRY GTM SLV BLZ PER VCT JAM DOM DMA ECU COL LCA GRD CRI BRA SUR WBG MAR EGY JOR TUN IRQ DZA AFG NPL BGD IND PAK BTN MDV ZAR LBR MOZ ETH BDI NER MWI CAF RWA SLE UGA BFA GIN TGO GNB MLI MDG COM GMB TZA BEN TCD SEN KEN ZMB CMR CIV SDN MRT COG SWZ NAM ZAF BWA MUS GAB

1.5 2 2.5 3 3.5 6 7 8 9 10 Log GDP per capita (PPP, lagged 5-year average) EAP ECA LAC MENA SAR SSA

PFM Quality and Income

SLB TMP PNG KHM VUT TUV FSM LAO MHL VNM TON WSM PHL IDN MNG TJK KGZ UZB MDA ARM GEO UKR KSV ALB MKD SRB MNE AZE BLR HTI NIC HND BOL GTM SLV PRY BLZ JAM ECU VCT DMA PER LCA GRD DOM COL CRI SUR PAN WBG MAR JOR TUN AFG NPL BGD PAK BTN LKA MDV ZAR BDI LBR NER CAF MWI MOZ GIN ETH TGO COM ZWE MDG BFA RWA SLE UGA GMB BEN MLI LSO TZA SEN KEN CIV STP GHA ZMB MRT SSD NGA COG SWZ NAM ZAF BWA MUS GAB

1.5 2 2.5 3 3.5 6 7 8 9 10 Log GDP per capita (PPP, lagged 5-year average) EAP ECA LAC MENA SAR SSA

PFM Quality and Income

Group

• No. of Countries

2001 (average) 2007 (average) 2014 (average) Increase/decrease in regional averages LAC

28 3.59 3.68 3.59

SAR

8 4.07 3.44 3.38

• -

EAP

22 3.50 3.43 3.34 −

SSA

47 2.97 3.12 3.17 ++

MENA

9 3.38 3.38 3.42 +

ECA

23 3.45 3.71 3.79 ++

Evolution of CPIA ratings for PFM – regional averages – 2001-2014

Problem: not so much achieved for wider governance

• Overall Governance effectiveness improved only in some cases and

worsened or stagnated in others – no change in the region overall

• Improving financial management systems (at central and upstream

levels) on its own – especially with limited improvements in HRM – is insufficient for improving service delivery

• Nonetheless, service delivery indicators have improved in many

countries

– primarily due to expansion of public systems as well as growth of private services (e.g. various forms of private schools and clinics), as well as NGO delivered services, esp. in fragile and post-conflict contexts

• Skepticism, as well as some enthusiasm for ‘trying to do more’ –

governance in sectors, tackling HRM, as well as DRM –

– WDR 2017 on Governance and the Law as a potential ‘new start’

No change

• n average
• ver the

past two decades