World Bank Policy Lending and the Quality of Public Sector Governance
This study investigates the impact of World Bank development policy lending for public sector governance on the quality of public sector management and institutions. The World Bank’s Country Policy and Institutional Assessments (CPIA) are used to m...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/05/24491011/world-bank-policy-lending-quality-public-sector-governance http://hdl.handle.net/10986/22001 |
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okr-10986-22001 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
EMPLOYMENT STRUCTURAL ADJUSTMENT ECONOMIC GROWTH ACCOUNTING REVENUE MOBILIZATION BRIBERY POLITICS FINANCIAL MANAGEMENT AUTONOMY INCOME INTEREST MACROECONOMIC MANAGEMENT LAWS VESTED INTERESTS GUARANTEES PUBLIC SECTOR INDUSTRY PROPERTY RIGHTS POLITICAL RIGHTS GOOD GOVERNANCE SERVICES TAX COLLECTION PUBLIC SERVICES POLITICAL ECONOMY FISCAL POLICY HUMAN RESOURCE MANAGEMENT GOVERNANCE PROBLEMS PROJECTS CORRUPTION ELECTORAL SYSTEMS BUREAUCRACY AUDITS MACROECONOMIC STABILITY INSTITUTIONS HUMAN RESOURCE PUBLIC POLICY GOVERNANCE QUALITY ADMINISTRATIVE REFORM PER CAPITA INCOME POLITICAL INSTITUTIONS CONTRACT ENFORCEMENT TRANSPORT FOREIGN AID CIVIL SOCIETY DEMOCRACY ECONOMETRICS INTERNAL ACCOUNTABILITY PRODUCTIVITY TRANSFERS CRITERIA DEBT MEASUREMENT ERROR INTERNATIONAL DEVELOPMENT LEGISLATION GOVERNANCE INDICATORS INDICATORS INCOME LEVELS PRIVATE SECTOR DEVELOPMENT ECONOMIC REFORMS ECONOMIC POLICIES LABOR LOANS TAX REVENUES DEMOCRATIC REGIMES SOCIAL DEVELOPMENT RULE OF LAW GOVERNANCE REFORMS DIAGNOSTIC INSTRUMENTS GRANTS INSTITUTIONAL REFORMS EQUITY PUBLIC SECTOR GOVERNANCE ACCOUNTABILITY ECONOMIC PERFORMANCE TRANSPARENCY GOVERNANCE ISSUES REVERSE CAUSALITY PARTICIPATION PUBLIC POLICIES VALUE ACCESS TO INFORMATION LAW BANK MACROECONOMICS POLICY OUTCOMES PROPERTY MEASUREMENT AID DEPENDENCE REGULATORY QUALITY INTERNATIONAL COMMUNITY REGULATION URBAN DEVELOPMENT COUNTRY DATA GOVERNANCE INDICATOR POLITICAL PARTIES ACCOUNTING SYSTEMS SOCIAL POLICIES GOVERNANCE INSTITUTIONAL REFORM ECONOMIC DEVELOPMENT CONTROLLING CORRUPTION POLITICAL FREEDOMS STATISTICS RISK PUBLIC SECTOR PERFORMANCE TAX SYSTEM POVERTY CRISES COUNTRY CHARACTERISTICS TAX ADMINISTRATION DECENTRALIZATION REVENUE RISK MANAGEMENT GOVERNANCE REFORM LENDING COMMUNITY BUREAUCRATIC QUALITY MACROECONOMIC POLICIES PUBLIC SECTOR MANAGEMENT COLLECTIVE ACTION GOVERNMENTS CIVIL SERVICE POLITICAL LEADERS SERVICE HUMAN DEVELOPMENT GROWTH |
| spellingShingle |
EMPLOYMENT STRUCTURAL ADJUSTMENT ECONOMIC GROWTH ACCOUNTING REVENUE MOBILIZATION BRIBERY POLITICS FINANCIAL MANAGEMENT AUTONOMY INCOME INTEREST MACROECONOMIC MANAGEMENT LAWS VESTED INTERESTS GUARANTEES PUBLIC SECTOR INDUSTRY PROPERTY RIGHTS POLITICAL RIGHTS GOOD GOVERNANCE SERVICES TAX COLLECTION PUBLIC SERVICES POLITICAL ECONOMY FISCAL POLICY HUMAN RESOURCE MANAGEMENT GOVERNANCE PROBLEMS PROJECTS CORRUPTION ELECTORAL SYSTEMS BUREAUCRACY AUDITS MACROECONOMIC STABILITY INSTITUTIONS HUMAN RESOURCE PUBLIC POLICY GOVERNANCE QUALITY ADMINISTRATIVE REFORM PER CAPITA INCOME POLITICAL INSTITUTIONS CONTRACT ENFORCEMENT TRANSPORT FOREIGN AID CIVIL SOCIETY DEMOCRACY ECONOMETRICS INTERNAL ACCOUNTABILITY PRODUCTIVITY TRANSFERS CRITERIA DEBT MEASUREMENT ERROR INTERNATIONAL DEVELOPMENT LEGISLATION GOVERNANCE INDICATORS INDICATORS INCOME LEVELS PRIVATE SECTOR DEVELOPMENT ECONOMIC REFORMS ECONOMIC POLICIES LABOR LOANS TAX REVENUES DEMOCRATIC REGIMES SOCIAL DEVELOPMENT RULE OF LAW GOVERNANCE REFORMS DIAGNOSTIC INSTRUMENTS GRANTS INSTITUTIONAL REFORMS EQUITY PUBLIC SECTOR GOVERNANCE ACCOUNTABILITY ECONOMIC PERFORMANCE TRANSPARENCY GOVERNANCE ISSUES REVERSE CAUSALITY PARTICIPATION PUBLIC POLICIES VALUE ACCESS TO INFORMATION LAW BANK MACROECONOMICS POLICY OUTCOMES PROPERTY MEASUREMENT AID DEPENDENCE REGULATORY QUALITY INTERNATIONAL COMMUNITY REGULATION URBAN DEVELOPMENT COUNTRY DATA GOVERNANCE INDICATOR POLITICAL PARTIES ACCOUNTING SYSTEMS SOCIAL POLICIES GOVERNANCE INSTITUTIONAL REFORM ECONOMIC DEVELOPMENT CONTROLLING CORRUPTION POLITICAL FREEDOMS STATISTICS RISK PUBLIC SECTOR PERFORMANCE TAX SYSTEM POVERTY CRISES COUNTRY CHARACTERISTICS TAX ADMINISTRATION DECENTRALIZATION REVENUE RISK MANAGEMENT GOVERNANCE REFORM LENDING COMMUNITY BUREAUCRATIC QUALITY MACROECONOMIC POLICIES PUBLIC SECTOR MANAGEMENT COLLECTIVE ACTION GOVERNMENTS CIVIL SERVICE POLITICAL LEADERS SERVICE HUMAN DEVELOPMENT GROWTH Smets, Lodewijk Knack, Stephen World Bank Policy Lending and the Quality of Public Sector Governance |
| relation |
Policy Research Working Paper;No. 7267 |
| description |
This study investigates the impact of
World Bank development policy lending for public sector
governance on the quality of public sector management and
institutions. The World Bank’s Country Policy and
Institutional Assessments (CPIA) are used to measure the
latter, the study considers only policy conditions targeted
at improvements in those areas. The analysis uses a
comprehensive country-year panel data set of aid
receiving-countries and finds a significant and inverse
U-shaped effect of public sector conditions on the quality
of public sector governance. For most observed values in the
data, the impact is positive, but it turns negative beyond a
value of 80 conditions. At that point, the predicted CPIA
score is about 0.25 point (0.3 standard deviation) higher
than with zero conditions. For most observations, the number
of cumulative conditions is below 80, so the estimated
effect of more conditions is generally positive. The
analysis corrects for potential endogeneity and shows that
the results are robust to sample restrictions, the use of an
alternative governance measure, and the inclusion of an
extended set of control variables. Falsification tests are
also consistent with a causal interpretation from conditions
to quality of public sector governance. The paper shows that
conditions related to public financial management and tax
reforms are more effective than those related to
anti-corruption or civil service and administrative reform,
where progress requires changing the behavior of a larger
set of “deconcentrated” actors. The paper concludes by
describing some innovative ideas in the Bank’s ambitious new
public sector management strategy that could improve the
effectiveness of its support for public sector governance reform. |
| format |
Working Paper |
| author |
Smets, Lodewijk Knack, Stephen |
| author_facet |
Smets, Lodewijk Knack, Stephen |
| author_sort |
Smets, Lodewijk |
| title |
World Bank Policy Lending and the Quality of Public Sector Governance |
| title_short |
World Bank Policy Lending and the Quality of Public Sector Governance |
| title_full |
World Bank Policy Lending and the Quality of Public Sector Governance |
| title_fullStr |
World Bank Policy Lending and the Quality of Public Sector Governance |
| title_full_unstemmed |
World Bank Policy Lending and the Quality of Public Sector Governance |
| title_sort |
world bank policy lending and the quality of public sector governance |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/05/24491011/world-bank-policy-lending-quality-public-sector-governance http://hdl.handle.net/10986/22001 |
| _version_ |
1764449878889463808 |
| spelling |
okr-10986-220012021-04-23T14:04:06Z World Bank Policy Lending and the Quality of Public Sector Governance Smets, Lodewijk Knack, Stephen EMPLOYMENT STRUCTURAL ADJUSTMENT ECONOMIC GROWTH ACCOUNTING REVENUE MOBILIZATION BRIBERY POLITICS FINANCIAL MANAGEMENT AUTONOMY INCOME INTEREST MACROECONOMIC MANAGEMENT LAWS VESTED INTERESTS GUARANTEES PUBLIC SECTOR INDUSTRY PROPERTY RIGHTS POLITICAL RIGHTS GOOD GOVERNANCE SERVICES TAX COLLECTION PUBLIC SERVICES POLITICAL ECONOMY FISCAL POLICY HUMAN RESOURCE MANAGEMENT GOVERNANCE PROBLEMS PROJECTS CORRUPTION ELECTORAL SYSTEMS BUREAUCRACY AUDITS MACROECONOMIC STABILITY INSTITUTIONS HUMAN RESOURCE PUBLIC POLICY GOVERNANCE QUALITY ADMINISTRATIVE REFORM PER CAPITA INCOME POLITICAL INSTITUTIONS CONTRACT ENFORCEMENT TRANSPORT FOREIGN AID CIVIL SOCIETY DEMOCRACY ECONOMETRICS INTERNAL ACCOUNTABILITY PRODUCTIVITY TRANSFERS CRITERIA DEBT MEASUREMENT ERROR INTERNATIONAL DEVELOPMENT LEGISLATION GOVERNANCE INDICATORS INDICATORS INCOME LEVELS PRIVATE SECTOR DEVELOPMENT ECONOMIC REFORMS ECONOMIC POLICIES LABOR LOANS TAX REVENUES DEMOCRATIC REGIMES SOCIAL DEVELOPMENT RULE OF LAW GOVERNANCE REFORMS DIAGNOSTIC INSTRUMENTS GRANTS INSTITUTIONAL REFORMS EQUITY PUBLIC SECTOR GOVERNANCE ACCOUNTABILITY ECONOMIC PERFORMANCE TRANSPARENCY GOVERNANCE ISSUES REVERSE CAUSALITY PARTICIPATION PUBLIC POLICIES VALUE ACCESS TO INFORMATION LAW BANK MACROECONOMICS POLICY OUTCOMES PROPERTY MEASUREMENT AID DEPENDENCE REGULATORY QUALITY INTERNATIONAL COMMUNITY REGULATION URBAN DEVELOPMENT COUNTRY DATA GOVERNANCE INDICATOR POLITICAL PARTIES ACCOUNTING SYSTEMS SOCIAL POLICIES GOVERNANCE INSTITUTIONAL REFORM ECONOMIC DEVELOPMENT CONTROLLING CORRUPTION POLITICAL FREEDOMS STATISTICS RISK PUBLIC SECTOR PERFORMANCE TAX SYSTEM POVERTY CRISES COUNTRY CHARACTERISTICS TAX ADMINISTRATION DECENTRALIZATION REVENUE RISK MANAGEMENT GOVERNANCE REFORM LENDING COMMUNITY BUREAUCRATIC QUALITY MACROECONOMIC POLICIES PUBLIC SECTOR MANAGEMENT COLLECTIVE ACTION GOVERNMENTS CIVIL SERVICE POLITICAL LEADERS SERVICE HUMAN DEVELOPMENT GROWTH This study investigates the impact of World Bank development policy lending for public sector governance on the quality of public sector management and institutions. The World Bank’s Country Policy and Institutional Assessments (CPIA) are used to measure the latter, the study considers only policy conditions targeted at improvements in those areas. The analysis uses a comprehensive country-year panel data set of aid receiving-countries and finds a significant and inverse U-shaped effect of public sector conditions on the quality of public sector governance. For most observed values in the data, the impact is positive, but it turns negative beyond a value of 80 conditions. At that point, the predicted CPIA score is about 0.25 point (0.3 standard deviation) higher than with zero conditions. For most observations, the number of cumulative conditions is below 80, so the estimated effect of more conditions is generally positive. The analysis corrects for potential endogeneity and shows that the results are robust to sample restrictions, the use of an alternative governance measure, and the inclusion of an extended set of control variables. Falsification tests are also consistent with a causal interpretation from conditions to quality of public sector governance. The paper shows that conditions related to public financial management and tax reforms are more effective than those related to anti-corruption or civil service and administrative reform, where progress requires changing the behavior of a larger set of “deconcentrated” actors. The paper concludes by describing some innovative ideas in the Bank’s ambitious new public sector management strategy that could improve the effectiveness of its support for public sector governance reform. 2015-06-02T20:47:56Z 2015-06-02T20:47:56Z 2015-05 Working Paper http://documents.worldbank.org/curated/en/2015/05/24491011/world-bank-policy-lending-quality-public-sector-governance http://hdl.handle.net/10986/22001 English en_US Policy Research Working Paper;No. 7267 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |