The World Bank Presented at:, World Bank October 2008 Presented by: Brian Levy Head GAC Secretariat Strengthening WBG Engagement on Governance & Anti-Corruption: Year One Implementation

The World Bank Page 2 Brian Levy GAC Secretariat GAC for Development  Principal GAC Purpose: Enhance Development Effectiveness  “don’t make the poor pay twice”  Multistakeholder engagement key to GAC reform & development outcome  GAC contributes in diverse ways to development impact  Better procurement: Bali urban infrastructure project  31% cost savings for infrastructure  Reduced malnutrition: Maharashtra community monitoring pilot  10 percent increase in healthy children in under one year  Civil service reform in Macedonia  Meritocratic recruitment: 37% (2004); 64% (2007)  Community prioritized & monitored infrastructure in Indonesia  $1.6 billion; 34,000 villages; 30% lower cost; now national poverty program

The World Bank Page 3 Brian Levy GAC Secretariat GAC in Projects, 2008  Four dimensions of holistic risk management  Upstream diagnosis to identify GAC constraints  ‘Defensive’: strengthened fiduciary controls in design & implementation  ‘Proactive: enhanced transparency, participation, 3 rd party monitoring  Informed risk-taking – including high-risk, high-return  Philippines 2 nd National Roads Improvement Project  2 nd opinion from special independent procurement evaluator  Capacity enhancement of Dept of Public Works & Highways, including: procurement controls (bid rigging) audit capacity  NGO group, Road Watch, to provide independent oversight on all roads sector contracting  Bank doubles supervision funding  Kenya Aids: NGO transparent, performance-based selection process  India Orissa Rural Livelihoods : Right to Information synergies

The World Bank Page 4 Brian Levy GAC Secretariat Implementing GAC From Country Strategies to Development Outcomes Country Strategies (CGAC) Development Outcomes: Services, Regulations, Control of Corruption GAC in Sectors GAC in Projects

The World Bank Page 5 Brian Levy GAC Secretariat Year One: Mainstreaming GAC in Country and Sector Strategies  The CGAC Process  “A country-team led process to identify, deepen, systematize and mainstream governance engagement”  Model good practice as path to mainstreaming  27 $100k (one-third very proactive)  Multistakeholder engagement (50%); diagnostics (75%)  GAC in Sectors  Slower to engage, but important shift by year-end  Peer learning networks (infrastructure; HD; natural resources)  GAC diagnostics support operational agenda-setting  Toolkits, sourcebooks etc  Sectoral example: pharmaceuticals

The World Bank Page 6 Brian Levy GAC Secretariat Cross-cutting: Adding the Demand-side From Country Strategies to Development Outcomes Country Strategies (CGAC) Demand Side Development Outcomes: Services, Regulations, Control of Corruption GAC in Sectors GAC in Projects

The World Bank Page 7 Brian Levy GAC Secretariat Year One: Mainstreaming the Demand-side  CGAC Multi-stakeholder engagement  Bangladesh, Democratic Republic of Congo, Honduras  The Project Demand-side:  Transparency, participation, 3 rd party monitoring  Other Year One Demand-side Initiatives  Community of practice  Draft legal guidance  Initial steps to portfolio coding, benchmarking and tracking

The World Bank Page 8 Brian Levy GAC Secretariat Cross-cutting: Adding Country Systems From Country Strategies to Development Outcomes Country Strategies (CGAC) Demand Side Country Systems Development Outcomes: Services, Regulations, Control of Corruption GAC in Sectors GAC in Projects

The World Bank Page 9 Brian Levy GAC Secretariat GAC Mainstreaming: An Integrated Approach  Strengthening Country Systems is a GAC Priority  Country Procurement Systems pilot (year 2 priority)  IEG reviews  Good news on public expenditure and financial management  Mixed findings for civil service reform and decentralization –Governance Council catalyzes reform agenda  Putting it all Together  Country program combines these many elements: “no one size fits all”

The World Bank Page 10 Brian Levy GAC Secretariat Adding Upstream Initiatives Country Strategies (CGAC) Demand Side Country Systems Development Outcomes: Services, Regulations, Control of Corruption GAC in Sectors GAC in Projects Actionable Governance Indicators (AGIs) Global

The World Bank Page 11 Brian Levy GAC Secretariat Year One: Progress on AGIs and Global  Progress on Actionable Governance Indicators  Outreach to foster use of existing AGIs  Public Expenditure and Financial Accountability (PEFA); 73 countries completed; 38 published (up from 6 in 1/08)  New AGIs being developed (Human Resource Management; education; health)  Global GAC Initiatives  StaR  Support for Construction (Cost), pharmaceuticals (MeTA)  Learning – governance and development impact

The World Bank Page 12 Brian Levy GAC Secretariat Priority Implementation Challenges for Year Two  Strengthened quality management vis-à-vis GAC  Regional vice-presidencies, IEG, QAG  Consolidating GAC-focused communities of practice  Strengthen monitoring of GAC-related progress  Coding and tracking demand-side  Framework for country-level progress assessment  Building knowledge and learning platform  Good practice for development effectiveness  ‘Big push’ on country procurement systems => Systematizing and scaling-up good practice is the overall priority