The Board of Directors of the World Bank has approved a Strategy for Strengthening World Bank Group Engagement on Governance and Anti-Corruption (GAC) (PDF, 1.5 Mb). The objective of the Bank's GAC work is to help develop capable and accountable states and institutions that can devise and implement sound policies, provide public services, set the rules that govern markets, and control corruption, thereby helping to reduce poverty. The strategy takes a comprehensive approach that involves working at the country, operational, and global levels. It seeks to build on lessons of experience and to systematically scale up programs that have a track record of success.
Based on the GAC Strategy, the World Bank has developed an Implementation Plan for Strengthening World Bank Group Engagement on GAC. This Implementation Plan articulates concrete steps to implement the GAC strategy and it was reviewed by the World Bank's Board of Executive Directors in October 2007. It proposes that country teams undertake a country governance and anti-corruption implementation plan (Country GAC or CGAC — see the subpage) process, pursuing innovative ways of engaging partners and clients on governance, typically as part of CAS preparation.
FM Sector's Role. The FM sector has a major role to play in implementing the GAC agenda. Sound public financial management (PFM) ensures accountability and efficiency in the management of public resources, and is an essential underpinning to improve governance and fight corruption. Good corporate financial reporting standards and practices are essential for the functioning of a market economy. Maintaining strong fiduciary practices in Bank-financed operations is needed to provide acceptable assurance on the use of funds provided by the Bank, and to sustain the confidence of its shareholders, other stakeholders and the public at large.
FM Sector Approach. The FM sector's approach to governance and anti-corruption was developed in parallel with the corporate GAC strategy. The FM Sector Board (FMSB) has approved the FM Sector Approach to GAC Strategy (PDF, 75 Kb), which outlines the sector's approach to support the Bank's GAC strategy. The main elements of the sector's contribution are to:
- support strengthening of country PFM systems
- improve corporate financial reporting standards and practices
- help increase the number of qualified FM professionals working in the public and private sectors
- strengthen fiduciary practices in Bank-financed projects; and
- work with global partners to harmonize support to partner countries in this area and support the development of international standards.
In these activities, the FM sector will work in close collaboration with various internal partners including Poverty Reduction and Economic Management Network, the Office of the Vice-President & Controller, Procurement, Legal, sectors (e.g., Sustainable Development, Human Development) and country management units.
The FM Sector Approach to GAC Strategy will serve as the basis for developing necessary guidance and tools for staff, and assist the FMSB's discussions on the sector's human resources strategy and resource requirements for implementing the World Bank GAC strategy.
Because of the nature of its work, the FM Sector is heavily involved in GAC issues on a regular basis — for example, GAC innovations with specific FM features. Country-level achievements includes extensive analytical and advisory work on fiduciary issues. Additional joint analytical work is being carried out to provide a more holistic view of governance and anti-corruption issues. Increasingly, follow-on support is being provided to critical institutions that combat corruption — including support to supreme audit institutions; computerization of government financial systems; strengthening of public sector internal controls and internal audit; improved financial reporting and audit in the private sector and state owned enterprises; and enhanced legislative scrutiny of public finances.
For further information on FM in GAC, contact Moses Wasike, email@example.com, +1-202-473-4661.