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GOVERNANCE & ANTICORRUPTION An Introductory Course Introduction • Governance and Corruption: Definition of Terms Impact on Development • Governance and Politics: Case Study – La Paz, Bolivia Concepts and Theory Assessment & Diagnostic Tools • • The Tools of the Trade: Institutional Governance Reviews Public Expenditure Tracking Survey (PETs) Corruption Surveys Case Study: Building Ownership thru Diagnostics Governance & the Executive: Internal Incentive Mechanisms • Public Expenditure Management: An Overview (financial aspects) • What Makes Public Organizations Work? (administrative aspects) Governance & the Executive: External Incentive Mechanisms • WDR `04: External Accountability and Service Delivery • Case Study: Media & Civil Society Participation (Philippines) Governance & Operations • Combating Corruption: The Experience in Africa • Bank Operations: Case Study on Trust Funds • Complementary Institutions: The Role of the Judiciary 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 Special Treats • • Rethinking Governance (Dani Kaufmann) Staff Training Program on Governance and Anticorruption GOVERNANCE & ANTICORRUPTION Impact on Development Impact of Governance: Higher investment & growth 20% % Investment share in GDP 2% Income per capita Growth Rate 1.5% 1% 0.5% 15% 0% -0.5% -1.0% 10% -1.5% High Medium Low High Quality of Governance Medium Low 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 . . . Better Development Outcomes Per Capita Income and Regulatory Burden Infant Mortality and Corruption 90 12,000 80 10,000 70 60 8,000 50 6,000 40 30 4,000 20 2,000 10 0 0 Weak Development Dividend x Average Good Control of Corruption Weak Average Good Regulatory Burden x Development 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 x Development Dividend Average Rule of Law Good Weak x Development Dividend Average Strong Voice and Accountability Note : The bars depict the simple correlation between good governance and development outcomes. The line depicts the predicted value when taking into account the causality effects (“Development Dividend”) from improved governance to better development outcomes. For data and methodological details visit http://www.worldbank.org/wbi/governance. 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) 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) 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