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GOVERNANCE & ANTICORRUPTION

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  1. GOVERNANCE & ANTICORRUPTION An Introductory Course

  2. Introduction • Governance and Corruption: Definition of Terms Impact on Development • Governance and Politics: Case Study – La Paz, Bolivia Concepts and Theory

  3. Assessment & Diagnostic Tools • The Tools of the Trade: Institutional Governance Reviews Public Expenditure Tracking Survey (PETs) Corruption Surveys • Case Study: Building Ownership thru Diagnostics

  4. Governance & the Executive:Internal Incentive Mechanisms • Public Expenditure Management: An Overview (financial aspects) • What Makes Public Organizations Work? (administrative aspects)

  5. Governance & the Executive: External Incentive Mechanisms • WDR `04: External Accountability and Service Delivery • Case Study: Media & Civil Society Participation (Philippines)

  6. Governance & Operations • Combating Corruption: The Experience in Africa • Bank Operations: Case Study on Trust Funds • Complementary Institutions: The Role of the Judiciary

  7. Bringing it all Together: The Case Study -- Uttarstan • Day 2: Introduction of the case study • Day 3: Preparation of a Governance Strategy for Uttarstan Morning– Group Preparations Afternoon– Group Presentations

  8. Special Treats • Rethinking Governance (Dani Kaufmann) • Staff Training Program on Governance and Anticorruption

  9. GOVERNANCE & ANTICORRUPTION Impact on Development

  10. 2% 1.5% 1% 0.5% 0% -0.5% -1.0% -1.5% Impact of Governance:Higher investment & growth % Investment share in GDP Income per capita Growth Rate 20% 15% 10% Medium Low High High Medium Low Quality of Governance Quality of Governance in this case was measured by perceptions of 4,000 firms in 67 countries on: (i) protection of property rights; (ii) judicial reliability; (iii) predictability of rules; (iv) control of corruption. Source: World Development Report Survey, 1997

  11. Per Capita Income and Infant Mortality and Corruption Regulatory Burden 12,000 90 80 10,000 70 8,000 60 50 6,000 40 4,000 30 20 2,000 10 0 0 Weak Average Good Weak Average Good Development Regulatory Burden Control of Corruption Development x x Dividend Dividend Literacy and Rule of Law Per Capita Income and Voice and Accountability 100 10000 9000 8000 75 7000 6000 50 5000 4000 3000 25 2000 1000 0 0 Weak Average Good Weak Average Strong Development Development Rule of Law x x Voice and Accountability Dividend Dividend Note : The bars depict the simple correlation between good governance and development outcomes. The line depicts the development outcomes. For data and methodological details visit http://www.worldbank.org/wbi/governance. . . . Better Development Outcomes predicted value when taking into account the causality effects (“Development Dividend”) from improved governance to better

  12. Key Research Articles • “Corruption and Growth”(Maoro, 1995) • “Institutions and Economic Performance”(Keefer & Knack, 1995) • “Governance Matters”(Kaufmann, 2001) • “Corruption and the Composition of Government Expenditures”(Maoro, 2002) • “Corruption, Public Investment, & Growth”(Tanzi and Davoodi, 2002) • “The Primacy of Institutions”(Rodrik &Subramanian, 2003)

  13. Kaufmann Governance Index KKZ #1. Voice & accountability KKZ #2. Political stability/ absence of violence: KKZ #3. Government effectiveness KKZ #4. Regulatory quality KKZ #5. Rule of law KKZ #6. Control of corruption Key Research Articles • “Corruption and Growth” (Maoro, 1995) • “Institutions and Economic Performance” (Keefer & Knack, 1995) • “Governance Matters” (Kaufmann, 2001) • “Corruption and the Composition of Government Expenditures” (Maoro, 2002) • “Corruption, Public Investment, & Growth” (Tanzi and Davoodi, 2002) • “The Primacy of Institutions” (Rodrik &Subramanian, 2003)