The GAC in Projects Agenda: An Overview

1. The GAC in Projects Agenda:An Overview Improving Development Outcomes

2. 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

3. 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

4. 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

5. 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)

6. 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.”

7. 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

8. 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

9. 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

10. 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)

11. “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

12. 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

13. 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

14. GAC in Projects Web Portal: Searchable Database