The COVID-19 crisis exposed weaknesses in the core governance systems in many IDA countries. Governments have faced many challenges in service delivery, policy coordination, and resource mobilization. IDA20 adopted Governance and Institutions as a cross-cutting issue to reflect its foundational and intersecting linkages across sectors. IDA is deepening commitments that reinforce fiscal sustainability and accelerate digital governance to improve service delivery, statistical capacity, and institutional strengthening.
Technology and innovation play a key role in strengthening government capability. IDA is enhancing focus on accessible, secure, and inclusive digital technologies as well as GovTech solutions. These investments will remain critical for strengthening fiscal capability, service delivery, and crisis preparedness and response.
IDA is supporting countries increase debt transparency and fiscal sustainability. It is helping improve domestic resource mobilization to generate fiscal space to fund investments by helping them reshape their tax systems and bolster tax compliance, while redoubling efforts to tackle illicit financial flows and reducing opportunities for corruption.
Although many challenges remain, IDA-funded operations in governance and institutions are making a difference.
- In Bangladesh, IDA helped the country develop an electronic government procurement (e-GP) system for all public sector organizations and improved their capacity to monitor projects with digital technology. The e-GP platform processes 35 percent of the national budget, which has significantly? reduced inappropriate bidding practices.
- In Burkina Faso, an IDA-funded project helped the national government improve citizen engagement and public sector accountability. It strengthened the institutional capacities of municipalities in 13 regions. The project developed a digital tool, Suivi de la Performance Municipale - SUPERMUN, to monitor service delivery performance. During the COVID-19 crisis, IDA partnered with the United Nations High Commissioner for Refugees (UNHCR) to build the capacity of national and local governments to purchase and distribute essential household items to Internally Displaced Persons (IDPs).
- In Cambodia, an IDA-financed project accelerated health sector reforms, which improved social health protection and expanded access to affordable healthcare. It helped create sustainable government institutions for a more equitable utilization of health services. Since 2016, the project has provided free access to 2.6 million outpatient visits and 190,000 hospital admissions annually.
- In Honduras, the IDA-funded Rural Competitiveness Project (COMRURAL) strengthened institutions to improve the agribusiness environment. It enhanced the regulatory framework and institutional capacity for enabling agribusiness competitiveness. The reforms allowed small-scale farmers to access credit from private financial institutions, benefiting 7,200 small-scale agriculture producers.
Last Updated: Mar 29, 2023