World Bank Policy Lending and the Quality of Public Sector Governance
Keywords
TAX SYSTEMINTEREST
ECONOMIC GROWTH
BUREAUCRACY
TRANSPORT
EQUITY
GOVERNANCE INDICATORS
LOANS
VESTED INTERESTS
COLLECTIVE ACTION
GOVERNANCE ISSUES
ACCOUNTING
POLITICS
ELECTORAL SYSTEMS
GUARANTEES
LENDING
GOVERNANCE PROBLEMS
TRANSFERS
POLITICAL FREEDOMS
INTERNATIONAL DEVELOPMENT
LAWS
GOVERNANCE QUALITY
GOVERNANCE REFORMS
HUMAN RESOURCE
AUTONOMY
PROPERTY
ADMINISTRATIVE REFORM
ECONOMIC PERFORMANCE
REGULATORY QUALITY
VALUE
PROJECTS
PARTICIPATION
BANK
TAX COLLECTION
MACROECONOMICS
TAX REVENUES
STATISTICS
GOOD GOVERNANCE
ACCOUNTING SYSTEMS
PUBLIC SECTOR PERFORMANCE
COUNTRY CHARACTERISTICS
ECONOMIC DEVELOPMENT
RISK MANAGEMENT
CRISES
MACROECONOMIC STABILITY
PROPERTY RIGHTS
REVERSE CAUSALITY
INSTITUTIONS
MACROECONOMIC POLICIES
BRIBERY
DIAGNOSTIC INSTRUMENTS
POVERTY
FINANCIAL MANAGEMENT
PRIVATE SECTOR DEVELOPMENT
CONTRACT ENFORCEMENT
CIVIL SOCIETY
PUBLIC POLICY
ACCOUNTABILITY
PUBLIC SERVICES
SOCIAL DEVELOPMENT
LEGISLATION
ECONOMIC POLICIES
GOVERNMENTS
INSTITUTIONAL REFORM
GROWTH
DEMOCRATIC REGIMES
ACCESS TO INFORMATION LAW
INCOME
POLITICAL PARTIES
POLITICAL ECONOMY
RISK
FISCAL POLICY
HUMAN DEVELOPMENT
POLITICAL RIGHTS
INTERNAL ACCOUNTABILITY
REVENUE MOBILIZATION
REVENUE
GRANTS
PRODUCTIVITY
RULE OF LAW
STRUCTURAL ADJUSTMENT
CONTROLLING CORRUPTION
SERVICES
FOREIGN AID
ECONOMIC REFORMS
COUNTRY DATA
INCOME LEVELS
MEASUREMENT ERROR
HUMAN RESOURCE MANAGEMENT
POLICY OUTCOMES
EMPLOYMENT
CORRUPTION
GOVERNANCE
SERVICE
POLITICAL LEADERS
GOVERNANCE INDICATOR
PUBLIC SECTOR GOVERNANCE
AID DEPENDENCE
TRANSPARENCY
ECONOMETRICS
GOVERNANCE REFORM
PUBLIC SECTOR MANAGEMENT
POLITICAL INSTITUTIONS
INDICATORS
BUREAUCRATIC QUALITY
DEBT
INDUSTRY
INTERNATIONAL COMMUNITY
PUBLIC SECTOR
LABOR
CRITERIA
AUDITS
PUBLIC POLICIES
MACROECONOMIC MANAGEMENT
REGULATION
URBAN DEVELOPMENT
INSTITUTIONAL REFORMS
CIVIL SERVICE
TAX ADMINISTRATION
SOCIAL POLICIES
DECENTRALIZATION
MEASUREMENT
DEMOCRACY
COMMUNITY
PER CAPITA INCOME
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http://hdl.handle.net/10986/22001Abstract
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.Date
2015-06-02Type
Working PaperIdentifier
oai:openknowledge.worldbank.org:10986/22001http://hdl.handle.net/10986/22001
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