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.
2. 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.
3. 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.
4. 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. It also worked to improve taxpayer services and voluntary compliance at the country’s borders through enhanced communication strategies, stakeholder satisfaction surveys, and through the use of data analytics on behavioral insights.
5. 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 needs to rapidly advance the governance and capacities of public institutions, which also affects progress in other sectors like environment, climate change, human development, innovation, and competition.
The World Bank provides analytics and technical assistance to strengthen key aspects of public sector governance and institutions in Montenegro. The project supports four priority areas:
- Strengthening the governance of state-owned enterprises (SOEs)
- Strengthening institutions and governance in key sectors including environment, energy, and innovation and health
- Improving revenue collection
- Accelerating government modernization and use of technology
Thus far, progress has been made across the four components. On revenue administration, a skills gap and readiness assessment for introducing the Value-Added-Tax Information Exchange System was completed. Technical assistance was provided for the Tax Authority’s human resources plan and for revisions to the Law on Excise Tax. Reform efforts were supported through workshops on EU tax administration competency frameworks, methodology and uses of the Montenegro Tax Authority’s skills gap assessment, and Value-Added-Tax Information Exchange System implementation requirements.
