Catalog

	Table of Contents
p. 20 of 34 BACK | NEXT Executive Summary Introduction Good governance defined The elements of good governance The Bank’s concern with governance quality The Bank’s approach to governance issues Promoting the elements of good governance in Bank operations Building governance capacity Public sector Management Public enterprise management and reform Public financial management Civil service reform Participatory development processes Legal frameworks Information openness The Bank’s modalities for enhancing governance in DMCs Resource implications Reporting arrangements

Governance: Sound Development Management : Promoting the elements of good governance in Bank operations

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Building governance capacity

Good governance implies the capacity to provide citizens with an acceptable level of public services, in an effective and efficient manner. From the Bank’s point of view, a DMC’s institutional capacity to conduct public business determines in large part its ability to undertake economic reforms and implement projects successfully. Hence, failure to establish effective public sector capacity undermines the credibility of reform initiatives and impacts adversely on the performance of development projects, raising costs for both borrowers and the Bank. Insofar as Bank operations are concerned, efforts to build (and strengthen) governance capacity in DMCs would cover (i) public sector management, (ii) public enterprise management and reform, (iii) public financial management, and (iv) civil service reform.

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