Wednesday, October 28, 2009

World Bank's disbursement culture leads to bad service delivery just like culture of allowances

In a blog posted on the CDG website http://blogs.cgdev.org/globaldevelopment/2009/10/when-the-culture-of-disbursement-meets-the-culture-of-corruption.php, Steve Berkman argues that the World Bank's 'culture of disbursement' creates a situation in which embezzlement and theft of World Bank funds may be the rule rather than the exception.

Berkman claims that World Bank managers are more interested in making sure that money goes out the door, than in making sure that money is well spent. He states "...workshops, conferences and projects aimed at “reducing vulnerabilities” or “reforming governance” are so much more palatable to the organization’s managers than digging up evidence of wrongdoing and pressuring governments to prosecute and recover funds.

Culture of disbursement = culture of allowances

Sounds familiar?

It seems that irrespective of the reason, when (international) public servants face incentives that are not aligned with the purpose of their work, one should expect waste, corruption and disappointing results.

The Government of Tanzania already has a report on how to align civil servant's incentives which quality service delivery (the Presidential Pay Commission's report). The World Bank should follow Tanzania's example and prepare its own report. And when it is ready, the World Bank should implement its recommendations!

Gloria

2 comments:

  1. Thanks for the link. Second last para is spot on. It's not just the world bank of course. Much of the Norwegian funds embezzled in the Ministry of Natural Resources and Tourism was embezzled through manipulating workshop and travel costs. Each act of embezzlement is quite small, but it all adds up (and the norgs knew all along.....). Jansen's report on this specifically cites the pressure to get the money out the door. Link at end.

    International funding NGOs, bilaterals... all feel the same pressure. And because the incentives are not aligned, it is easier for them to ignore waste, mismanagement and corruption than address it. I know because I have done so.

    this box won't accept pasting. visit cmi.no and look around for the Eirik Jansen report

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  2. Erik Jansen's report can be downloaded from:
    http://www.cmi.no/publications/publication/?3328=does-aid-work-reflections-on-a-natural-resources

    Gloria

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