Governance

Governments are facing ongoing, overlapping crises and tightening fiscal space, which are challenging their ability to respond effectively in unprecedented ways. Citizens’ trust in public institutions continues to erode, highlighting the urgent need to renew the current social contract in countries around the world.

Countries with strong institutions are more resilient, are better able to facilitate private sector growth, reduce poverty, deliver key services, address climate change challenges, build public confidence, and ultimately reduce risks of conflict and instability.

As governments strive to deliver more with fewer resources, it is crucial for the public sector to effectively and efficiently turn funds into services that benefit citizens and create an environment that supports jobs and growth. The Governance Global Department supports countries in building institutions that are capable, efficient, resilient, sustainable, inclusive, and accountable so they are better equipped to meet today’s pressing challenges. To do so, the World Bank focuses on three key areas: strengthening fiduciary systems, enhancing public administration and services, and boosting institutional capacity and effectiveness.

The Governance and Institutions Cross-Cutting Issue (G&I CCI) in IDA20 supports capable, inclusive, and accountable public administration. Building on progress made in IDA18 and IDA19, IDA20 G&I CCI reinforces fiscal sustainability and advances digital governance to improve service delivery, data capacity, and institutional effectiveness. Key policy commitments support debt transparency, domestic resource mobilization, GovTech, and combatting illicit financial flows—essential for supporting IDA’s green, resilient, and inclusive investments. In the new IDA21 cycle, a policy commitment on institutional strengthening will support institutional capacity building and anticorruption efforts in core government functions such as public administration, public financial management, and procurement, as well as the institutional dimensions of environmental and social issues.

With its convening power and expertise, the World Bank supports countries in addressing public sector governance challenges through evidence-based reforms. Our work aims to support client countries to build capable, efficient, inclusive, and accountable institutions that deliver better services.  We collaborate with governments, civil society, the private sector, academia, and  development agencies, and  develop knowledge products on governance to shape global standards.

Our strategy focuses on three priorities: strengthening governments’ management of their financial and human resources, enhancing public sector delivery of core services, and promoting evidence-based approaches using administrative and other data to assess capacity and address bottlenecks.  We are delivering on our strategy through three streams:

Fiduciary Systems: Delivers targeted support and global knowledge to strengthen the design, development, and administration of public finance policies, systems, and processes. Work is structured around eight lines: public financial management; procurement for development; domestic revenue administration; state-owned enterprise governance; governance in sectors; multi-level governance; climate change governance; and fiduciary quality support.

Public Administration and Services: Offers expert support to strengthen government management of public administration and improve service delivery. Work is structured under xx lines: anticorruption for development; public administration performance; GovTech and public sector innovation; justice and rule of law; and coalitions for reform.

Institutional Capacity and Effectiveness: Provides specialized support and global knowledge on data and methodologies to assess the institutional capacity of the public sector in developing countries.

The Governance and Institutions Cross-Cutting Issue (G&I CCI) in IDA20 supports capable, inclusive, and accountable public administration.

Building on progress made in IDA18 and IDA19, IDA20 G&I CCI reinforces fiscal sustainability and advances digital governance to improve service delivery, data capacity, and institutional effectiveness. Key policy commitments support debt transparency, domestic resource mobilization, GovTech, and combatting illicit financial flows—essential for supporting IDA’s green, resilient, and inclusive investments. In the new IDA21 cycle, a policy commitment on institutional strengthening will support institutional capacity building and anticorruption efforts in core government functions such as public administration, public financial management, and procurement, as well as the institutional dimensions of environmental and social issues.

We work with partners to extend our reach.

The Governance and Institutions umbrella program, a multi-donor trust fund established in 2022, focuses on supporting client countries in improving public sector performance and strengthening institutional reform, leveraging the power of digital and technology solutions in the public sector, and enhancing transparency and accountability. It receives generous support from the Federal Ministry of Finance of the Republic of Austria, Global Affairs Canada, the Chandler Foundation, the Ministry of Foreign Affairs of Estonia, the European Union, the Hewlett Foundation, the MacArthur Foundation, the Ministry of Economy and Finance of the Republic of Korea, the Swedish International Development Cooperation Agency (SIDA), the Swiss State Secretariat for Economic Affairs (SECO), and the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO).

The Financial Management Umbrella Program (FMUP) provides World Bank client countries with support to improve their financial management systems—which, in turn, helps drive improved government performance and improved development results. Our partners provide the funding that supports both the development of global public goods as well as in-country and regional technical assistance, capacity building, and analytics we provide. They are also critically important strategic partners, each bringing expertise and experience in public financial management and related fields, which shapes and informs what we do and how we do it. FMUP receives support from Australian Aid, European Union, Sida, UK International Development, Austrian Development Cooperation, Gates Foundation, State Secretariat for Economic Affairs (SECO), Federal Ministry of Austria, the Government of Korea, Slovak Republic’s Ministry of Finance.

Coalitions for Reforms Global Program

The Coalitions for Reforms (C4R) Global Program helps navigate reform and policy implementation challenges by raising awareness, building capacity, and promoting the uptake of an integrated approach on collective action. The C4R approach combines tools to build leadership skills, establish coalitions, manage change, and deploy communications strategically.

Global Program on Justice and Rule of Law

Effective justice institutions are vital to ending poverty and boosting prosperity. They build government trust, protect rights, and builds a confident environment for investment and growth. Justice supports the political process, curbs corruption, and improves public services, especially for the poor.

Governance Contact

Lara Saade
lsaade@worldbank.org