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Title page 1

Contents 6

Foreword 10

Acknowledgments 12

Executive Summary 14

Introduction 14

Organizational dimensions 18

Governance dimensions 21

References 26

Abbreviations 27

Chapter 1. A Framework for Understanding Public Institutions 28

Introduction 28

Defining public institutions, institutional capacity, and policy mandates 30

Conceptual framework: The role of public institutions 31

Organizational dimensions 34

Governance dimensions 41

Applying the framework 47

Applying the framework to procurement and regulatory institutions 47

Notes 51

References 51

Chapter 2. Public Institutions That Procure from the Private Sector 57

Introduction 57

Framework for public procurement institutions 57

Policy mandates 59

Organizational dimensions 61

Governance dimensions 71

Institutional challenges in procurement span multiple dimensions 76

Applying the framework: Corruption and passive waste in public procurement 78

Notes 80

References 80

Chapter 3. Public Institutions That Regulate the Private Sector 84

Introduction 84

Framework for regulatory institutions 85

Policy mandates 88

Organizational dimensions 91

Governance dimensions 97

Regulatory institutional challenges span multiple dimensions 102

Applying the framework: Case study on telecommunications regulatory institutions in Peru 105

Competitive spectrum auctions 106

Regulatory delays 108

Notes 110

References 111

Appendix A. Methodology for Assessing Procurement Systems Indicators 114

Tables 9

TABLE 1.1. Examples of measures for governance dimensions across organizational dimensions 46

TABLE 1.2. Using the framework to diagnose potential sources of common policy implementation problems 48

TABLE 2.1. Common procurement problems and how the organizational and governance dimensions contribute to them 78

TABLE 3.1. Common regulatory problems and how the organizational and governance dimensions contribute to them 105

TABLE 3.2. Using the framework to diagnose potential sources of policy implementation problems in telecommunications regulatory agencies in Peru 107

Figures 7

FIGURE ES.1. Variation in institutional capacity within countries across 10 policy areas 15

FIGURE ES.2. From policies to outcomes: Public institutions framework 16

FIGURE ES.3. Relationship between country-level measures of the quality of procurement personnel and ease of contracting with the government 19

FIGURE ES.4. Number of countries with electronic government procurement systems, along with their features over time, 1990-2023 20

FIGURE ES.5. Decision-maker tenure and regulatory milestones in Peru's telecommunications sector 23

FIGURE ES.6. Organizational and governance dimensions in procurement and regulation 24

FIGURE 1.1. From policies to outcomes: Public institutions framework 32

FIGURE 1.2. Distribution of the share of public servants recruited through interviews, by public institution 36

FIGURE 1.3. Budget execution in Armenia, Paraguay, and Uganda, by public institution, 2011-21 37

FIGURE 1.4. Percentage of countries with information systems, by type of information system, and percentage of countries with interoperable... 39

FIGURE 1.5. Distribution of the share of public servants stating that their organization sets clear targets across public institutions in Ghana and Guatemala 41

FIGURE 1.6. Distribution of the share of public servants across public institutions of the same country acknowledging that political connections... 44

FIGURE 1.7. Number of countries with no systems, with systems but without publishing information, and with systems and publishing information,... 45

FIGURE 2.1. Framework applied to procurement institutions 58

FIGURE 2.2. Relationship between country-level measures of the quality of procurement personnel and ease of contracting with the government 63

FIGURE 2.3. Distribution of the ratio of investment spending to spending on procurement office, by ministry, department, or agency,... 64

FIGURE 2.4. Number of countries with electronic government procurement systems, along with their features over time, 1990-2023 67

FIGURE 2.5. Country-level measures of transparency in the procurement system 77

FIGURE 3.1. Framework applied to regulatory institutions 86

FIGURE 3.2. Scores for government-provided services that support regulatory compliance, by type of service 87

FIGURE 3.3. Country-level data on regulatory restrictions and price for a data-only mobile broadband basket 90

FIGURE 3.4. Distribution of appointment authority for telecommunications regulatory institutions 92

FIGURE 3.5. Country-level share of bank regulators specializing in bank functions 93

FIGURE 3.6. Financing mechanisms for regulators in countries, by tercile of income distribution 94

FIGURE 3.7. Interoperability of different information systems, by country 96

FIGURE 3.8. Within-country and across-sector variation in the setting and disclosure of strategic objectives 98

FIGURE 3.9. Share of OECD sector regulators accountable to either the legislature or the public 100

FIGURE 3.10. Country-level measures of the independence of regulatory agencies and their financial resources, across sectors 103

FIGURE 3.11. Decision-maker tenure and regulatory milestones in Peru's telecommunications sector 109

Boxes 7

Box 1.1. Public institutions for procurement and regulation: Insights from World Bank Group Diagnostics 49

Box 2.1. Accountability in public procurement: Example of Burkina Faso 72

Maps 9

MAP 3.1. Level of transparency in electricity regulations across the African continent, 2022 101

Appendix Tables 9

TABLE A.1. Criteria in the MAPS framework relevant to the personnel dimension 114

TABLE A.2. Criteria in the MAPS framework relevant to the transparency dimension 115

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Explore the intricate link between private sector growth and public institutions’ capacity to execute policy mandates. Using an innovative framework, the analysis uncovers challenges in institutional effectiveness while offering insights into strategies that drive sound policy implementation and foster sustainable advancement.

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