Macroeconomics

The nature of public sector problems - complex, cross-boundary and unsolvable by traditional tools and approaches – also reinforce the importance of building the capacity of public sector to innovate and invent solutions to the complex and intractable problems faced by society. Public sector organisations have always looked for new ways to fulfil their public mission. We create workable solutions to support public sector in meeting these challenges and use innovation to transform their public sector by developing a deeper understanding of public sector innovation, building an evidence base of what works

Macroeconomics focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments. Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies.

The world has entered a new era of rapid global change driven by major shifts in demographics, wealth, technology, and climate.

But economic growth has been uneven, has come at the expense of the environment, and already has slowed due to climate damages. Global challenges — including fiscal strains on governments exacerbated by the COVID-19 pandemic, conflicts, environmental degradation resource depletion, and record levels of displacement — are threatening recent gains. These challenges are compounded by intensifying systemic risks, including trade tensions, rising debt levels, reduced effectiveness of monetary policy as a crisis instrument, and increasing inequality — among and within countries.

To accelerate sustainable economic growth and inclusion, developing countries must tackle a variety of related underlying challenges. These include low levels of productivity and international competitiveness, inefficient public spending, inadequate domestic resource mobilization, price distortions from the fiscal system that discourage sustainability, lack of economic resilience, rising debt levels, an uncertain trade environment, and the rising danger of climate change.

Economic growth must benefit all and be sustainable. We support to develop smart economic policies that foster sustainable and inclusive economic growth, and address challenges to economic stability including climate change. Priority areas include:

Fiscal policy:

Fiscal policy is key to developing sustainable trajectories for revenues, expenditures, and deficits and the management of fiscal risks, with an emphasis on determining fiscal space and funding sources and improving public expenditure management.

Domestic resource mobilization: Better tax systems are one of the largest untapped resources to promote poverty reduction and support climate, health, and other key government objectives.

Debt:

Debt is a critical form of financing for the sustainable development goals, but only when borrowing is done at sustainable levels and in a transparent fashion. Failure to achieve sustainable development goals furthermore risk exacerbating debt.

Economics of climate change:

Climate change is no longer seen simply as an environmental problem. It is recognized as a serious financial, economic and social problem that, left unmitigated, could push an additional 132 million people into extreme poverty by 2030, underscoring the importance of zero-carbon growth strategies.

Trade:

Open trade within appropriate policy frameworks is an engine of growth that creates jobs, reduces poverty, and increases economic opportunity, including for women in developing countries.

Public Finance and Procurement:

Provides specialized support and global knowledge to strengthen the design, development, and administration of public finance policies, systems, and processes. This focuses on five core thematic areas: Public Financial Management including public expenditure management, public investment and asset management and government financial reporting; Public Procurement and contract management; Domestic Revenue Administration; State-Owned Enterprise, corporate governance and financial reporting; and Fiduciary Assurance.

Public Administration:

Generates global knowledge, incubates innovation, produces data and analytics, supports operational work, and fosters partnerships to support effective, inclusive, and accountable public administrations. The unit is structured around six main global programs: Public Administration Reform, Subnational Governance, Justice Reform and rule-of-law, GovTech, Anticorruption, and Coalitions Building for Reform and the Future of Government.

State-Owned Enterprises (SOEs) and Corporate Governance: Effective functioning of SOEs promote development and achievement of twin goals, especially given their roles in service delivery in key sectors such as energy, water and transport, and fiscal stability. SOEs are important economic actors across regions and rank among the world’s largest companies. In fact, they have been an important part of the response to the COVID-19 pandemic. SOE financial results affect fiscal performance and government balance sheets. Corporate governance, including corporate financial reporting, is relevant for SOEs and beyond to all public interest entities. We also provide a range of knowledge, convening and capacity development services in the area of financial reporting and auditing.

Public Institutions data and analytics: We provide strategy and support for transversal governance engagements and ensures that the global governance agenda is greater than the sum of its parts. Its remits covers: assessment of governance broadly defined, including the distribution of power, interests, and resources, as well as technical processes and systems; assessment of the current state of public institutions as well as its implications for institutional reform and implementation of complex policies such as the ones needed to address climate change, across countries and regions

Independent and effective Supreme Audit Institutions for good governance

We are supporting enhanced transparency and accountability by enhance independence and accountability of Supreme Auditing Institutions (SAIs), including support SAIs to comply with international audit standards adapted by countries, and to introduce risk-based audits, performance audits and use of Computer Assisted Audit Tools (CAATs).

Overlapping crises and the ability of governments to respond is stretched in unprecedented ways. Citizens’ trust in public institutions continue to erode, and there is an urgency for renewing the current social contract in countries around the world.

Public Sector Governance and Anticorruption continue to rank high among the most important development priorities. In this context, governments need to do more with less to meet increasing demands from citizens while removing obstacles for private sector development. To effectively address climate change and pandemic risks there is a need for a stronger, flexible, and more responsive civil service which can incorporate risk management and has access to contingencies in an emergency.

The lessons from the COVID-19 response point to the need to adapt models of government operations, service delivery and interactions with citizens, which include GovTech options for modernization of services to citizens and businesses. These lessons will be important in tackling climate change and future pandemic risks.

Our services support countries to build capable, efficient, resilient, sustainable, inclusive, and accountable institutions. This is critical for returning to sustainable growth and boosting shared prosperity. It includes strengthening Public Finances, Public Administration, and Public Institutions. The ability of governments to effectively provide public goods, to support an environment that can generate jobs and growth, to address market failures and to engage citizens in the process is more important than ever. Countries with strong institutions are more resilient, are better able to facilitate private sector growth, reduce poverty, deliver valuable services and address climate change.