THE 2017 World Development Report: Governance and the Law tackles the unequal distribution of power that results to ineffectiveness of policies like for anti-corruption and decentralization.
"Power asymmetries help explain, for example, why model anti-corruption laws and agencies often fail to curb corruption, why decentralization does not always improve municipal services; or why well-crafted fiscal policies may not reduce volatility and generate long-term savings," the press release on the 2017WDR reads.
While institutions are blamed when policies and solutions to identified concerns do not produce the expected outcome, the report notes that there is actually more to this than just the blame. Rather, there is the need to look into improving governance to mean harnessing both the state and non-state groups to design and implement the policies, working within both formal and informal rules, depending on how things roll.
“As demand for effective service delivery, good infrastructure, and fair institutions continues to rise, it is vital that governments use scarce resources as efficiently and transparently as possible,” World Bank Group President Jim Yong Kim said. “This means harnessing private sector expertise, working closely with civil society, and redoubling our efforts in the fight against corruption. Without better governance, our goals of ending extreme poverty and boosting shared prosperity will be out of reach.”
President Rodrigo Duterte has already said this earlier on about inclusive growth where he intends to harness the private sector while not necessarily privatizing government powers. It's more of a distribution of rules where government regulates and implements programs and private sector takes the cue and jump in where their expertise lies.
To achieve this, there must be commitment, coordination, and cooperation, the "three core functions to produce better governance outcomes".
To wit, we quote:
u201dBolster commitment to policies in the face of changing circumstances. This would help, for example, in cases where decision makers spend windfall revenues instead of saving them for the future , or when leaders renege on peace building agreements in the absence of binding enforcement.
Enhance coordination to change expectations and elicit social desirable actions by all. Challenges occur in many contexts, from finance to industrial clusters and urban planning. Financial stability, for example, relies on beliefs about credibility. Just consider how despite the rationale for leaving their money in the bank during times of distress, the public may rush to withdraw their deposits if they believe that others will too – ultimately causing the banks to lose liquidity and crash.