• Who Cares About Development Risk?

    A general view appears to be that development and fiduciary risks are “two sides of the same coin and cannot be usefully be separated”. This Development Practice Note argues that they are different, and that focusing on development risk and recognizing the trade-offs between development and fiduciary risk can result in far more cost-effective aid.

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  • What is Team-Based Performance Management and How Does it Work?

    When a government adopts a team-based performance management approach, it sends the powerful message that the state values institutional culture as the primary determinant of performance. This Development Practice Note explains how a team-based approach can improve performance and efficiency across government, with a focus on its use in Ministries of Finance.

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  • What Determines the Quality of Public Finance Systems?

    Why do some ministries of finance around the world consistently deliver good results, while others cannot make much progress? This Development Practice Note looks at the three most common answers to that question, and explains why only one is correct.

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  • The Consequences of Donor-Induced Fragmentation

    Donor-induced fragmentation of public financial management systems reduces reputation risk, but it unambiguously increases development risk – the longer-term risk of not achieving development objectives. This Development Practice Note proposes a four-part solution for dealing with this risk.

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  • The Blight of Auction-Based Budgeting: What is it and how can we deal with it?

    The pervasiveness of auction-based budgeting is a high-risk problem in aid dependent countries. Allocating a budget based on a willingness to pay is extremely dangerous. Selling off budgets to the highest bidder undermines the whole “public good” concept of allocating budgets in ways that maximise the “bang for buck from the budget” for the benefit of citizens.

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  • The Arab World Must Invest In Its Greatest Asset – Young People

    As 2016 ends, the Arab world find itself witnessing battles in the ancient cities of Mosul and Aleppo, with uncertain futures for Iraq, Syria, Yemen, Libya – and those are just the countries with active armed conflicts. Other parts of the region face the challenges of economic stagnation or internal unrest. And still, we must.. Read more

  • The Absorptive Capacity Limit: The point where too much aid becomes bad aid

    Absorptive capacity is not fixed – theoretically, it can be improved by successful reform. Absorptive capacity can change if the underlying drivers of absorptive capacity change. An increased capacity to absorb aid can occur for various reasons, such as increased public financial management competencies or less onerous aid delivery methods that impose lower transactions costs on recipient governments.

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