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Over the past five years, the World Bank has made significant progress supporting governance as a core element in operations to end extreme poverty and boost shared prosperity. To help its clients, the Bank strives to deepen its understanding of the environment through the design and implementation of its projects. Since the inception of the Governance and Anticorruption (GAC) Strategy in 2008, the Governance Partnership Facility (GPF) has played a vital role in the success of its implementation.

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.

This report seeks to inform the development of a framework for addressing governance reform in fragile and conflict affected environments through are view of international experiences. The report analyzes the experience both of countries that sustained a transition to peace and those that fell back into conflict. Pertinent lessons will be drawn selectively from a range of fragile and conflict affected countries, including Haiti, Cambodia, Bosnia and Herzegovina, Mozambique, Liberia, Timor-Leste, Afghanistan, Rwanda, Indonesia, Sierra Leone, and Angola. No specific typologies have been adopted or formed in order to assess these lessons, because typologies can be limiting and experiences can be better assessed based on the specificity of each country's context. The first section of the report sets out broadly accepted definitions of key terms such as governance, state building, and fragility. The second section reviews experiences with diverse governance dimensions and explores the objectives, opportunities, and constraints associated with each.

This paper focuses on recent theoretical developments in political economy and what role they might play in explaining and reforming individual country and global distortions in food and agricultural markets. Four groups of forces are isolated: political governance structures emphasizing the role of democratic mechanisms; the design of polycentric structures for assigned governmental authority for setting policy instruments; market structure and other socioeconomic characteristics; and the role of sector mobility and asset diversification. Each of these forces are distilled and data sources are reviewed that will allow econometric specifications that have both explanatory and policy reform implications.

This paper uses a case study of Costa Rica to identify the reasons why democracy is conducive for development. By the mid-twentieth century, Costa Rica had begun to depart from the all-too-common mixture of political instability and economic stagnation characteristic of much of the developing world. This paper claims that this country has benefited from better-than-average public policies, a conclusion based upon an original assessment of policy effectiveness and a major comparative ranking of state policies. It largely rejects the interpretation that uncommon development performance stems from institutions created during the colonial period and instead emphasizes how unending political stalemates gradually made the struggle for power more democratic. A central conclusion of this paper is that political competition-as well as steady economic growth rates and development, more generally-interact with and reinforce each other so that the exercise of power foments rather than retards economic growth.

De que maneira a profunda e persistente desigualdade socioeconômica afeta a integridade do Estado de Direito? O principal objetivo deste artigo é procurar entender os efeitos, no sistema jurídico, da polarização entre pobreza e riqueza, especialmente com relação a uma das idéias centrais do Estado de Direito: a noção de que as pessoas devem ser tratadas de maneira imparcial pela lei e por aqueles encarregados de sua implementação. O argumento principal proposto aqui é que a exclusão social e econômica, decorrente de níveis extremos e duradouros de desigualdade, destrói a imparcialidade da lei, causando a invisibilidade dos extremamente pobres, a demonização daqueles que desafiam o sistema e a imunidade dos privilegiados, aos olhos dos indivíduos e das instituições. Em suma, a desigualdade socioeconômica extrema e persistente corrói a reciprocidade, tanto em seu sentido moral quanto em seu interesse mútuo, o que enfraquece a integridade do Estado de Direito. Esse artigo também será publicado em Thomas Pogge (ed.). A Human Right to be Free from Poverty: Its Role in Politics. Oxford: Oxford University Press, 2008. The idea of Rule of Law has become almost unanimously embraced in our days. For human rights advocates, Rule of Law is perceived as an indispensable tool to avoid discrimination, and arbitrary use of force. But, how does profound and persistent social and economic inequality impact the integrity of the Rule of Law? The main objective of this essay is to try to understand the effects of the polarization of poverty and wealth on the legal system, especially in relation to one of the core ideals of the Rule of Law: that people should be treated impartially by the law and by those responsible for its implementation. By revising a substantive and a formalist conception of the Rule of Law, I will try to provide some explanation about why states and people would comply with the Rule of Law standards. The article will also consider the impact of extreme and persistent inequality over the Rule of Law, using my familiarity with the Brazilian experience as an example. In the final section, the focus will be on how even an incomplete Rule of Law system can be employed or challenged to empower the invisible, humanize the demonized, and bring the immune back to the realm of law. This paper will be also published at Thomas Pogge (ed.). A human right to be free from poverty: its role in politics. Oxford: Oxford University Press, 2008. En la actualidad la idea del Estado de derecho está aceptada casi unánimemente. Los defensores de los derechos humanos ven en el Estado de derecho una herramienta indispensable para evitar la discriminación y el uso arbitrario de la fuerza. ¿Cómo influye la profunda y persistente desigualdad social y económica en la integridad del Estado de derecho? El objetivo principal del presente ensayo es tratar de comprender los efectos de la polarización de la pobreza y de la riqueza en el sistema jurídico, especialmente con relación a uno de los ideales esenciales del Estado de derecho: que la ley y los responsables de la implementación de dicho Estado de derecho traten a la gente con imparcialidad. Mediante una revisión de la concepción sustantiva y de la formalista del Estado de derecho, intentaré proporcionar al menos alguna explicación a por qué los estados y los pueblos cumplen con los estándares del Estado de derecho. El artículo también considerará el impacto de la desigualdad extrema y persistente en el Estado de derecho, basándome en mi conocimiento de la experiencia brasileña como ejemplo. La sección final se concentrará en el hecho de que incluso un sistema incompleto de Estado de derecho puede ser usado y puesto a prueba para darle más poder a los invisibles, para humanizar a los demonizados, y para traer otra vez a los inmunes al reino de la ley. Ese artículo también será publicado en inglés en Thomas Pogge (ed.), A human rights to be free from poverty: its role in politics. Oxford: Oxford University Press, 2008.