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

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

... Better Development Outcomes Infant Mortality and Corruption 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 WeakAverageGood Rule of Law x Development Dividend Per Capita Income and Voice and Accountability 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

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)

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