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This strategy paper takes stock of the Banks ' recent work on governance, public sector institutional reform, and capacity building (particularly in core public institutions) and addresses what the World Bank can do to enhance its ability to help client countries implement this agenda. This report focuses primarily on reforms of core public sector institutions (such as administrative and civil service reforms, public expenditure management, tax administration, public enterprise reform, and legal and judicial reform) and their interface with sectoral institutions., It touches only lightly on institutional concerns within specific sectors (for example, in health, education, and rural infrastructure), and it does so primarily to point out generic issues that concern many sectors. The last section of Part I of this report summarizes specific goals for the next three years and a set of specific actions to be taken to help achieve them. Part II includes strategies and short descriptions of innovative initiatives prepared by each of the Bank ' s regional vice-presidencies and by the Development Research Group and by the World Bank Institute. The overall strategy and the strategies for individual regions, DRG, and WBI propose specific proactive measures to enhance the quality and impact of Bank analytic work, partnerships, in-country training initiatives, and lending for institutional reform and governance in the public sector.

Publisher: World Bank

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