Governance and Institutional Development

Governance may be defined as the processes by which power and authority are shared and exercised in society, and influence exerted over policies and decisions in the management of a county’s economic and social resources for development.

Good governance concerns the systems and processes by which policies and decisions are made and implemented. It ensures that public and private resources are managed in a manner that is effective, efficient, equitable, and that guarantees the realisation of civil, cultural, economic, political and social human rights. Good governance is a key objective in CDB’s Strategic Plan 2015-2019, and considered “a necessary condition for promoting the systematic reduction of poverty”. The quality of governance is critical for economic transformation, improving competitiveness, and promoting inclusive, sustainable growth and ensuring their overall contribution to reducing poverty in Borrowing Member Countries (BMC). It ensures that these factors in turn contribute to the reduction of poverty within these territories.

The Governance Programme within the Technical Cooperation Division (TCD) is responsible for overseeing the Bank’s Governance and Institutional Development Policy and Operational Strategy (GIDPOS).

The GIDPOS includes support to BMCs in the following areas:

  • improving economic management including public sector investment programming
  • debt and fiscal management
  • strengthening evidenced-based policy-making
  • supporting the adoption of Managing for Development Results (MfDR) approaches to long-term planning
  • promoting competitiveness and innovation through policy reforms, and
  • creating the environment for private sector-led growth.

The Technical Cooperation Division coordinates and oversees the implementation of the GIDPOS in Borrowing Member Countries; designs and implements sectoral governance projects including in fiscal policy, water and sanitation, and provides guidance to other Divisions and Units within the Bank on the integration of governance analysis and targets in the Bank’s operations.

One key area of the Division’s governance programming is statistical development. The Division assists countries not only in developing the framework and tools for MfDR, but also in creating the evidence base for measuring results.
This assistance includes capacity-building on collecting, analysing and disseminating economic, social, demographic and poverty data in areas such as governance indicators, National Population and Housing Census, and monitoring of the new Sustainable Development Goals.