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Governance

Cash Transfers Increase Trust in Local Government

David Evans's picture

Cash transfers seem to be everywhere. A recent statistic suggests that 130 low- and middle-income countries have an unconditional cash transfer program, and 63 have a conditional cash transfer program. We know that cash transfers do good things: the children of beneficiaries have better access to health and education services (and in some cases, better outcomes), and there is some evidence of positive longer run impacts. (There is also some evidence that long-term impacts are quite modest, and even mixed evidence within one study, so the jury’s still out on that one.)

In our conversations with government about cash transfers, one of the concerns that arose was how they would affect the social fabric. Might cash transfers negatively affect how citizens interact with each other, or with their government? In our new paper, “Cash Transfers Increase Trust in Local Government” (can you guess the finding from the title?) – which we authored together with Brian Holtemeyer – we provide evidence from Tanzania that cash transfers increase the trust that citizens have in government. They may even help governments work a little bit better.

Making taxes work for the SDGs

Jan Walliser's picture
Graphic: World Bank Group

Taxation plays a fundamental role in effectively raising and allocating domestic resources for governments to deliver essential public services and achieve broader development goals.

Game-changers and whistle-blowers: taxing wealth

Jim Brumby's picture

High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, is distributed even more unequally than income, as in the picture below.

How can we enhance competition in bus passenger urban transport?

Shomik Mehndiratta's picture
Photo: EMBARQ Brasil/Flickr

Também disponível em português.

While bus services are often planned and coordinated by public authorities, many cities delegate day-to-day operations to private companies under a concession contract. Local government agencies usually set fares and routes; private operators, on the other hand, are responsible for hiring drivers, running services, maintaining the bus fleet, etc. Within this general framework, the specific terms and scope of the contract vary widely depending on the local context.

Bus concessions are multimillion-dollar contracts that directly affect the lives of countless passengers every day. When done right, they can foster vigorous competition between bidders, improve services, lower costs, and generate a consistent cash flow. However, too often the concessions do not deliver on their promise and there is a perception across much of Latin America that authorities have been unable to manage these processes to maximize public benefits.

As several Latin American cities are getting ready to renew their bus concessions—including major urban centers like Bogotá, Santiago de Chile, and São Paulo—now is a good time to look back on what has worked, what has not, and think about ways to improve these arrangements going forward.

In Somalia, humanitarian and development solutions seek to ensure that droughts never turn to famine again

Puteri Natalie Watson's picture


The year 2017 was momentous for Somalia, with the inauguration of a new president and parliament following a historic electoral process, and also the launch of a National Development Plan (2017–19). However, the peaceful transition of power was soon followed by the declaration of a “natural disaster” in the form of a prolonged drought that sparked fears of famine. By the end of 2017, 6.2 million people were in need of humanitarian assistance and over 1 million people internally displaced.

Building trust and improving the business environment: A win-win proposition

Steve Utterwulghe's picture



Since the Edelman company began tracking trust with its Trust Barometer, never has the world seen such an “implosion of trust.” In 2017, two-thirds of countries fell into “distruster” territory with trust levels of below 50 percent. Governments are now distrusted by investors in 75 percent of countries, and the same  is the case for business in 46 percent.

Transitions and Time Lags: Understanding a Dispiriting but Temporary Phenomenon

Antonius Verheijen's picture


Having spent much of my working life working with and in countries in transition, it remains painful to watch the disillusionment that so often strikes people that had the courage to change a bad political situation, but then are forced to live through economic hardship. It is those that chose change that seem always to suffer most. But one source of hope is that, fortunately, this hasn’t stopped people from trying. This was true for Southern Europe in the late 1970s (though I was still in school at the time), Central and East European countries in the 1990s, several African countries in the 2000s and, as history has a knack for repeating itself, Tunisia today. 

A critical piece of the infrastructure puzzle: good governance

Chris Heathcote's picture



A major factor hindering infrastructure implementation and delivery is the absence of good governance, according to the 130 delegates from 27 countries who came together for the first Regional Roundtable on Infrastructure Governance in Cape Town in November.
 
There’s no denying infrastructure is crucial to Africa’s growth prospects. Nor can one ignore the ever-growing need for infrastructure on the continent—in Sub-Saharan Africa, only 35% of the population has access to electricity, and 23% still lack access to safe water and sanitation. Despite an estimated shortfall of nearly $100 billion in infrastructure investment in Africa, lack of financing is not the biggest problem.
 
The landmark Roundtable brought together representatives from African governments, the global private sector, multilateral and international organizations, civil society organizations and other development partners, for a discussion on the challenges and practical solutions to the governance impeding successful infrastructure delivery in Africa.

What does risk management have to do with Sri Lankan families?

Ralph van Doorn's picture
While the number of Sri Lankans living under the poverty line has decreased tremendously, many still live right above it and can fall back into extreme poverty if they experience a shock such as a natural disaster. Photo Credit: Lakshman Nadaraja 


Imagine there is a small fire in your house: someone forgot to put out a cigarette stub and accidentally set your rubbish bin on fire. You will need just one bucket of water to put it out.
 
But up the ante, and it is no longer possible for an individual to handle it. For instance, if your entire house was on fire, you would need to call your local fire station for help.
 
Now, go up one more level. You live in a thickly wooded part of a district like Badulla, and a forest fire covering hundreds of acres is threatening homes and businesses—then it would take the resources of the country, and maybe even aid and support from international allies, to battle the fire and help people recover.
 
I am telling you this story to illustrate how there are levels of risks—and responses—to consider when discussing a subject like integrated risk management.
 
As part of our work on the recently released Sri Lanka Development Update (SLDU) we considered the risks and opportunities facing Sri Lanka, beginning from the smallest unit of the household and building up to the country, as represented by the public sector.
 
There’s been a lot of talk about the macro-economy and national level reforms and policy initiatives. However, in this blog I wanted to focus on your families. What does integrated risk management mean for households?
 
The poorest Sri Lankan families are vulnerable to shocks

Twelve big moments of building sustainable cities and communities

Andy Shuai Liu's picture

[Put together the puzzle pieces to reveal the picture. Scroll down to #9 for hints.]
 

If the world in 2017 were a jigsaw puzzle, what memorable pieces would you choose to make up the big picture?
 
Hurricanes Harvey, Irma, and Maria that pounded coastal United States and the Caribbean; the severe drought that struck Somalia; forest fires that are ravaging through southern California… Hard to miss were the natural disasters that displaced – even killed – individuals and families.
 
There were also the “manmade” disasters – conflicts that erupted or lasted in many parts of the world continued to force men, women, and children out of their homes and homelands.
 
Yet, turning to the bright side, the world has come a long way this year in addressing these challenges to boost inclusive and sustainable growth.


Just a couple of weeks ago, for example, global and local leaders gathered at the One Planet Summit in Paris to firm up their commitment – and ramp up action – to maximize climate finance for a low-carbon, disaster-resilient future.
 
At the World Bank, our teams working on social development, urban development, disaster risk management, and land issues have endeavored with countries and cities worldwide throughout the year to achieve a common goal: building inclusive, resilient, and sustainable cities and communities for all.
 
How did they do? From our “Sustainable Communities” newsletter, we have captured 12 moments that mark the major accomplishments and lessons learned in 2017—and inspire our continued work to end extreme poverty and boost shared prosperity in 2018:
 
#1: Africa’s Cities: Opening Doors to the World


 
Released in February 2017, our report on cities in Africa notes that, to grow economically as they are growing in size, Africa’s cities must open their doors and connect to the world. Improving conditions for people and businesses in African cities is the key to accelerating economic growth, adding jobs, and improving city competitiveness. Two more reports released in 2017 also shined a light on inclusive urban growth in East Asia and the Pacific and in Europe and Central Asia respectively.


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