February 2017: The World Bank’s 2017 version of its annual World Development Report focuses on the theme, ‘Governance and the Law.’
The report highlights that “Policy making and policy implementation do not occur in a vacuum,” and suggests that governance, which is examined in light of the political and social settings “in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests,” can “mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity.”
The report notes that, while the distribution of power in society is partly determined by history, there are possibilities for change. These possibilities occur when the incentives for those with power are shifted to reshape their preferences, such as through bargains among elites, greater citizen engagement, or support from international actors for reform.
In order to ensure policy effectiveness, the report highlights the need for credible commitments, coordination among actors and cooperation, “particularly citizens’ willingness to contribute to public goods and not free-ride on others.” It further identifies a framework for understanding how governance can facilitate the achievement of these three objectives. The 2017 World Development Report recommends paying attention to three principles when thinking about reform: consider the functions, not just the form, that institutions must perform; recognize that capacity building can contribute to addressing actors’ relative bargaining powers; and address the role of law in changing incentives and preferences in addition to focusing on achieving the rule of law. The report also suggests following a six-step policy effectiveness cycle: Diagnose, by identifying underlying functional problems; Assess existing the power asymmetries in the policy arena; Target entry point(s) for reform; Design the best mechanism for intervention; Implement the mechanism in collaboration with a coalition of key stakeholders; and Evaluate and adapt the mechanism.
In addition to numerous examples from countries and projects around the world, the 2017 World Development Report also includes 13 short case studies, in which the conceptual framework is applied to policy areas ranging from public-private partnerships to corruption and illicit financial flows.
The 2017 version of the World Development Report follows the 2015 report on ‘Mind, Society, and Behavior’ and the 2016 report on ‘Digital Dividends’ in examining how policy makers “can make fuller use of behavioral, technological, and institutional instruments to improve state effectiveness for development.” [Publication: World Development Report 2017: Governance and the Law]