The GAC in Projects Agenda: An Overview Improving Development Outcomes

The GAC in Projects Agenda: Themes, Principles, and “Emerging Good Practices” From Country to Sector to Project Roles and Responsibilities Where to go for help

GAC Agenda: Key Themes Governance and Corruption are not the same thing! Governance is about how a country manages its resources for development Good governance is associated with faster growth and more pro-poor development outcomes Poor governance has the opposite effects, and provides greater scope for corruption to occur Corruption is an outcome – a consequence – of poor governance Both poor governance and corruption reduce development effectiveness

What’s different from “Pre-GAC”? Naming the problem (and talking about it with our clients) Digging Deeper (what’s really behind poor governance?) Applying the “TAP” Principles

The Three Key Principles of Good Governance: Transparency– of processes, and of information in the public domain Accountability – internal in terms of the proper use of public resources; external in terms of responsiveness to clients Participation – in terms of “voice”, inputs to project design, and oversight of implementation (the “demand” for good governance)

If I ignore it, will it go away? Who cares? Why do they care? What are the implications for the Bank? “Invading Armies can be resisted, but NOT an idea whose time has come.”

The Starting Point: GAC at the Country Level The CGAC Approach: “Work from the bottom up” Engage the whole team Identify the GAC impediments to development and potential entry points Incorporate in the Country Assistance Strategy

GAC Agenda at Country Level Public Financial Management Reforms Budget and fiscal management reform – including enhanced parliamentary oversight Reform of procurement, financial management, public sector accounting and auditing Civil Service Reform Legal and Judicial Reform “Voice for the People” (w/Gov’t approval) Establishment of Anti-Corruption Agencies

From Country Level to the Sector and Project Levels TAP Principles at the country level: “Right to Information”; “Rule of Law”; “Social Accountability” Does this stuff “trickle down”? Not automatically, but it can be helpful Country conditions set the stage for work on GAC issues at the sector and project level Country Team has key role to play in cross-sector coordination and knowledge sharing about both GAC issues in the country and “what works” in mitigation

The GAC Agenda at the Sector and Project Level Focus on GAC Risks at the sector level, using “value chain analysis” to identify key points of vulnerability Drill down, using political economy analysis to understand the underlying resistance to reform Develop plans for improving governance and reducing corruption at the sector level (including communications strategy and TAP-related tools and approaches) Reflect (as appropriate) in project design (“Smart Project Design” and Anti-Corruption Action Plans)

“Emerging Good Practices” Rely on existing Bank processes: There are no new policies, procedures, or standards! Innovative new approaches are emerging in risk assessment, risk mitigation and project supervision ORAF involves a more comprehensive framework for assessing GAC risks to development effectiveness Risk mitigation innovations include a focus on both “supply side” and “demand side” tools and approaches

Roles and Responsibilities GAC in Projects Working Group OPCS: Procurement/FM/IL Reform Network Anchors/Sector Units Country Managers/Country Teams Social Development: DFGG Community of Practice EXT/Comm-GAP PREM (PSM)/WBI (several units) INT: Preventive Services Unit

Where to go for Help? See previous slide… Web Sites – see list in Course Manual Advisory Units (e.g., INF’s GAC Squad) INT’s Preventive Services Unit GAC in Projects Peer Learning Network GAC in Project Web Portal

GAC in Projects Web Portal: Searchable Database