Public administrations—the organizations and workers in the executive arm of governments, from ministries to municipalities down to public schools to and hospitals—are critical in shaping policy, implementing government functions and ensuring the delivery of essential services to citizens. By enforcing regulations and managing finances and infrastructure, they are at the frontline of addressing pressing global issues such as climate change, pandemics, and restoring public trust in governance.
The G&I Trust Fund finances the following projects and activities in the area of public administration and institutional reform.
1. Activities of the Global Program for Improving Public Administration Performance, which aims to provide analytical and thought leadership to advance public administration reforms globally.
 | Visit the global program's website |
 | Read the global report 'Public Workforce Performance and Prosperity' |
2. Institutionalizing performance-based financing for service delivery in Malawi
A new G&I-funded activity launching in 2026 in Malawi seeks to strengthen the country’s decentralization agenda by aligning incentives and harmonizing performance management across different levels of government. By helping to enhance service delivery in the medium to long term through functional delivery facilities and cross-institutional incentives, the grant aspires to improve human capital outcomes, particularly in sectors such as education and health. It will support embedding and harmonizing performance-based financing architecture within the Government of Malawi’s systems, and scaling it up to new areas and funding windows such as the reformed Constituency Development Fund. It also aims to extend current performance-based grants to urban local governments, using tailored approaches that address the distinct needs of both urban and rural contexts.
The World Bank’s Governance to Enable Service Delivery Phase I (GESD 1.0) project has been supporting the Government of Malawi in implementing a results-based approach to governance reform, embedded within national and local government systems. GESD 1.0 established a platform that increased the confidence of government and development partners to consolidate development expenditure through local government systems, improving institutional capacity and performance for basic service delivery. Building on this, the Government of Malawi has expressed interest in a successor project (GESD 2.0) to further institutionalize and harmonize the performance-based grants within government financing systems, expand its reach, and enhance service delivery outcomes, including in response to climate-related disasters.
The G&I activity will finance analytical work which will support the design and strengthen the implementation of GESD 2.0’s components and feed into the continued policy dialogue around Malawi’s decentralization agenda.
3. Governance and Economic Development in Europe and Central Asia report
In the report ‘Hindering or enabling? The role of states in MIC to HIC transitions in ECA’, prepared in collaboration with the ECA Chief Economist’s Office, a chapter delves into the critical role of the state in guiding countries from middle-income to high-income status. It focuses on the development of public institutions and state mechanisms that foster the transition to innovative, high-income economies. The chapter underscores the need for ECA countries to enhance institutional quality and sustain it in tandem with economic growth. It outlines the progression from investment-driven to innovation-led growth, emphasizing the importance of curbing policy and state capture, as well as shielding against fiscal and other shocks. Experiences from ECA countries, Finland, and South Korea highlight the importance of supportive institutions for knowledge economies.
4. A Government Functional Review for Strategic Planning and Legal Reforms Strategy in Armenia
This G&I-funded activity is supporting the Government of Armenia in enhancing its performance and strategic planning. Using the recommendations from a World Bank functional review of the Prime Minister’s Office and Ministry of Finance, the Government of Armenia has developed a new Strategic Governance Framework. World Bank experts also supported government representatives and line ministries in developing a detailed roadmap for transitioning into a whole-of-government result-focused strategic management system. Technical inputs to the institutional and operational design of a new government-wide monitoring and evaluation system of public policies in Armenia were also provided. Currently, the World Bank is supporting the Ministry of Justice in developing the new Judicial and Legal Reforms Strategy in line with the Government’s updated strategic planning framework. Lessons from this pilot will inform the rollout of the new results frameworks across other government agencies.
5. Activities towards a More Effective and Accountable Customs Administration in Armenia
The World Bank is supporting a modernization of Armenia’s Customs Administration that will enhance taxpayer communication and stimulate the export sector for sustained economic growth. Through recommendations and engagement with local and international experts, a user-informed strategy and action plan will be developed, including legislative revisions and a range of technical assistance for the implementation of targeted reforms. For the customs service, critical areas for enhancement have been highlighted such as targeted customs control, digital advancements, and environmental sustainability. More recently, the project reviewed and recommended improvements to business processes for post-clearance control functions within the customs administration and trained officials in analyzing for risk of illicit financial flows.
This reform is a critical step toward improving customs efficiency and enhancing compliance monitoring. A new G&I grant as of 2026 continues the above-described support provided in the past few years, combined with G&I’s support for efforts towards a whole-of government GovTech approach in Armenia.
6. Activities for building an effective, sustainable and transformational public sector in Montenegro
Montenegro became a candidate European Union (EU) member state in 2010. To be admitted, the country aims to advance the governance and capacities of public institutions, which also affects progress in other sectors like environment, climate change, human development, innovation, and competition.
Supported by the G&I grant ‘Building an Effective, Sustainable, and Transformational Public Sector (BEST-Montenegro)’, the World Bank provides comprehensive analytics and technical assistance to strengthen key aspects of public sector governance and institutions in Montenegro. The activity supports four priority areas:
- Accelerating government modernization through technology adoption and the expansion of online public services;
- Strengthening governance and institutional frameworks in key sectors including environment, energy, and innovation and health;
- Improving revenue collection and administration to align with EU standards;
- Modernizing and strengthening the governance of state-owned enterprises (SOEs).
Thus far, substantial progress has been made across the four components. A comprehensive reform package was prepared to fortify the governance structures of SOEs, enhance the operational capabilities of tax administration, and drive institutional transformation within priority sectors. These reform efforts are underpinned by rigorous analytical work and consultative processes, ensuring that proposed measures are both evidence-based and tailored to Montenegro’s specific institutional context.
A stock-taking exercise in June 2025 culminated in an expansion of the grant with additional activities that reflect current government priorities and further support Montenegro's path to EU accession. The additional activities are expected to be implemented by December 31, 2028:
- Public administration reform: Accelerate public administration reform with a focus on local economic development and better regulation;
- Integrated revenue management: Continue the modernization of the Montenegro Tax Administration by supporting the utilization of the recently launched Integrated Revenue Management System (IRMS) and the closing of regulatory gaps on tax administration;
- SOE reform: Strengthen governance, performance and green transition of SOEs, and encourage higher private sector participation and investment in SOEs.
