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. 10% 15% 20% High MediumLow % Investment share in GDP HighMediumLow -1.5% 0% 1% 2% 1.5% -0.5% -1.0% 0.5% Income per capita Growth Rate 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 Impact of Governance: Higher investment & growth

11. ... Better Development Outcomes Infant Mortality and Corruption 0 10 20 30 40 50 60 70 80 90 WeakAverageGood Control of Corruption x Development Dividend 0 2,000 4,000 6,000 8,000 10,000 12,000 WeakAverageGood Regulatory Burden x Development Dividend Per Capita Income and Regulatory Burden Literacy and Rule of Law 0 25 50 75 100 WeakAverageGood Rule of Law x Development Dividend Per Capita Income and Voice and Accountability 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 WeakAverageStrong Voice and Accountability x Development Dividend predicted value when taking into account the causality effects (“Development Dividend”) from improved governance to better 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.

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

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