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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
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