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Enabling the Private Sector ©¤ ÐÓ°ÉÂÛ̳ Conference on Public Institutions for Development

January 30-31, 2025
in Washington, DC and Online
ÐÓ°ÉÂÛ̳ Public Institutions for Development Conference

ÐÓ°ÉÂÛ̳

Please scroll to the agenda to replay the events.

This conference featured academics, development organizations and policymakers who shared research findings, best practices, and innovative approaches to improve public institutions, with a thematic focus on enabling the private sector.

The keynote speakers were , the Jeffrey Cheah Professor of South-East Asia Studies and Chair of the International Development Area at the Harvard Kennedy School and , the Tata Chancellor's Professor of Economics at the University of California, San Diego.

We define public institutions as ¡°public sector organizations mandated with policy implementation, as well as the rules and processes that govern these organizations¡±. The primary examples of public institutions are ministries, departments, and agencies (MDAs) ¨C public sector organizations responsible for implementing specific policy mandates. These are the meso-level government bodies tasked with the day-to-day work of policy implementation, from collecting taxes and building roads to educating children and promoting public health. As such, the effectiveness of public institutions is critical for effective policy implementation and, by extension, for development outcomes.

The private sector is a major driver of economic growth and development, but it needs a functioning public sector to thrive. The private sector creates jobs, generates income, and contributes to the overall expansion of the economy. Through entrepreneurship, innovation, and investment, it stimulates productivity and competitiveness and contributes to climate-friendly investments. Public institutions provide the public goods and services that allow households and firms to succeed, and they set and enforce the rules that enable inclusive, resilient, and sustainable economic development. Yet they often fall short and fail to meet people¡¯s needs, demands, and expectations. As such, understanding what helps public institutions succeed ¨C and how organizations like the ÐÓ°ÉÂÛ̳ can best support them ¨C is critical for enabling private sector-led growth and development.

All times are in EDT | Online and in Washington DC

January 30, Day 1

8:15-9:15

Continental Breakfast | MC Front Lobby

9:15-9:30

Welcome Remarks | Preston Auditorium |

Indermit Gill (ÐÓ°ÉÂÛ̳)

9:30-10:30

Keynote | Preston Auditorium |

Introduction: Aart Kraay (ÐÓ°ÉÂÛ̳)

Keynote: (Harvard Kennedy School)

¡°Strengthening Public Institutions¡±

10:30-11:00

Coffee Break

11:00-12:30

Public Institutions¡¯ Capacity and the Private Sector | Preston Auditorium |

Chair:  Chiara Bronchi (ÐÓ°ÉÂÛ̳)

The private sector's growth depends on capable public institutions, which provides infrastructure, safety, and a stable investment environment. However, weak policy implementation due to waste, corruption, poor skills, or favoritism can hinder prosperity. This session will examine how public institutions¡¯ capacity is linked to private sector development.

Speakers:

- Rita Ramalho (ÐÓ°ÉÂÛ̳)

- (International Finance Corporation)

- (University of California, Berkeley)

12:30-13:30

Lunch Break | MC Front Lobby

13:30-15:00

Parallel Session: Regulatory Institutions - Independence, Accountability and Transparency | Room MC C2-350 |

Chair: Zeinab Partow (International Finance Corporation)

This session will discuss aligning the market and society's regulatory needs with the state's ability to design and implement regulations while considering the public interest and preventing capture.

Paper 1: ¡°The Distribution of Power: Decentralization and Favoritism in Energy Infrastructure¡± |

- Presenter:  (The Wharton School, University of Pennsylvania)

- Co-authors: Catherine D. Wolfram, Felipe Vial, Eric Hsu, Oliver W. Kim, Edward Miguel

Paper 2: ¡°Did the Arab Spring Promote Competition? Evidence from Tunisia¡±

- Presenter:  (ÐÓ°ÉÂÛ̳)

- Co-authors: Massimiliano Cali, Mhamed Ben Salah 

Paper 3: ¡°Does SOE Spending Crowd Out Private Investment in China¡±

- Presenter: Lixin Colin Xu (Cheung Kong Graduate School of Business)

- Co-authors: Zhangkai Huang, Xueying Jiang

Discussant: Galileu Kim (ÐÓ°ÉÂÛ̳)

 

Parallel Session: Organizational Dimensions of Public Procurement Agencies I | Room MC C1-100 |

Chair: Michael Woolcock (ÐÓ°ÉÂÛ̳)

This session will examine how public procurement and investment systems can either hinder or encourage private sector participation and improve efficiency.

Paper 1: ¡°Governments' Home Bias and Efficiency Losses: Evidence from National and Subnational Governments¡± |

- Presenter:  (ÐÓ°ÉÂÛ̳)

- Co-author: Marta Santamar¨ªa

Paper 2: ¡°Kamikazes in Public Procurements: Bid-Rigging and Real Non-Market Outcomes¡± |

- Presenter:  (National University of Singapore)

- Co-author: Alminas ?aldokas

Paper 3: ¡°Public Procurement and Firms: Evidence from Kenya¡± |

- Presenter: Justice Tei Mensah (ÐÓ°ÉÂÛ̳)

- Co-authors: Peter Chacha Wankuru, Benard K. Kirui

Discussant: Nona Karalashvili (ÐÓ°ÉÂÛ̳)

 

Parallel Session: Organizational Dimensions of Tax Administration | Room MC C2-370 |

Chair: Mahvish Shaukat (ÐÓ°ÉÂÛ̳)

This session will discuss interventions that improve the functioning of tax administration agencies.

Paper 1: ¡°Organizing Fiscal Capacity¡± |

- Presenter:  (Northwestern University)

Paper 2: ¡°Algorithms and Bureaucrats: Evidence from Tax Audit Selection in Senegal¡± |

- Presenter: Pierre Bachas (ÐÓ°ÉÂÛ̳)

- Co-authors: Anne Brockmeyer, Alipio Fereira, Bassirou Sarr

Paper 3: ¡°Examining the Potential Impact of Technology-Enabled Tax Administration on Revenue Generation in Ghana¡± |

- Presenter: Thelma Elizabeth Ohene-Larbi (Ghana Revenue Authority)

Discussant: Mary Hallward-Driemeier (Georgetown University)

15:00-15:30

Coffee Break

15:30-17:00

Governance and the Law | Preston Auditorium |

Chair:  Andrew Dabalen (ÐÓ°ÉÂÛ̳)

This session will examine the World Development Report 2017 (Governance and the Law) and discuss how the operational and analytical efforts of the ÐÓ°ÉÂÛ̳ have progressed since its publication. 

Speakers:

- Luis Felipe L¨®pez-Calva (ÐÓ°ÉÂÛ̳)

- Franziska Ohnsorge (ÐÓ°ÉÂÛ̳)

- (Georgetown University)

17:00-18:00

Light Reception

 

January 31, Day 2

8:15-9:00

Continental Breakfast | MC Front Lobby

9:00-10:00

Keynote| Preston Auditorium |

Introduction: Arturo Herrera (ÐÓ°ÉÂÛ̳)

Keynote: (University of California, San Diego)

¡°Accelerating Development: The Imperative of State Capacity¡± 

10:00-10:30

Coffee Break

10:30-11:30

Panel on Public Procurement | Preston Auditorium |

Chair: Erica Bosio (ÐÓ°ÉÂÛ̳)

This session will discuss the most recent academic research in public procurement and its policy implications. 

Speakers:

- (Columbia University)

- (Open Contracting Partnership)

11:30-12:30

Panel on Regulatory Institutions | Preston Auditorium 

Chair: Mario Guadamillas (ÐÓ°ÉÂÛ̳)

This session will discuss the most recent academic research in regulatory institutions and its policy implications.

Speakers:

- (University of California, Berkeley)

- (University of East Anglia) |

12:30-13:30

Lunch | MC Front Lobby

13:30-15:00

Parallel Session: Public Procurement Agencies - Independence, Accountability and Transparency I | Room MC C2-350 | 

Chair: Dan Rogger (ÐÓ°ÉÂÛ̳)

This session will explore how to reduce capture in public procurement agencies.

Paper 1: ¡°Organized Crime, Public Procurement, and Firms¡±

- Presenter:  Elena Stella (Northwestern University)

Paper 2: ¡°Procuring Low Growth: The Impact of Political Favoritism on Public Procurement and Firm Performance in Bulgaria¡± |

- Presenter:  (University College London/Government Transparency Institute)

- Co-authors: Mihaly Fazekas, Viktoriia Poltoratskaya, Marc Schiffbauer

Paper 3: ¡°Speed of Payment in Procurement Contracts: The Role of Political Connections¡± |

- Presenter:  (Monash University)

- Co-authors: Bernardo Ricca, Thiago Scot

Discussant: Qianmiao Michelle Chen (ÐÓ°ÉÂÛ̳)

 

Parallel Session: Organizational Dimensions of Regulatory Agencies and Related Public Institutions | Room MC C1-100 |

Chair: Rita Ramalho (ÐÓ°ÉÂÛ̳)

This session will cover the design and implementation of regulatory policy, focusing on incentives to effectively serve the public. 

Paper 1: ¡°Data Science for Justice: Evidence from a Nationwide Randomized Experiment in Kenya¡± |

- Presenter:  (ÐÓ°ÉÂÛ̳)

- Co-authors: Matthieu Chemin, Daniel L. Chen, Vincenzo di Maro, Paul Kimalu, Momanyi Mokaya

Paper 2: ¡°State Capacity as an Organizational Problem. Evidence from the Growth of the U.S. State Over 100 Years¡± |

- Presenter:  (University of Bologna)

- Co-author: Edoardo Teso

Paper 3: ¡°Using Market Inquiries: A Sharper Tool for Competition Authorities?¡± |

- Presenter: Siphosethu Tetani (Competition Commission South Africa)

- Co-author:  Itumeleng Lesofe

Discussant: Paul Phumpiu Chang (ÐÓ°ÉÂÛ̳)

 

Parallel Session: Public Institutions - Independence, Accountability and Transparency | Room MC C2-370 |

Chair: Ekaterina Vostroknutova (ÐÓ°ÉÂÛ̳)

This session will discuss how to reduce capture in different types of public institutions.

Paper 1: ¡°State Capacity, Informality, and Clientelism¡± |

- Presenter:  (Universit¨¦ Paris 1 Panth¨¦on-Sorbonne)

- Co-author: Giuliana Pardelli

Paper 2: ¡°Audits and Bureaucratic Corruption: Evidence from Brazilian Municipalities¡±

- Presenter:  (Aix-Marseille School of Economics)

- Co-authors: Galileu Kim, Julieta Peveri

Paper 3: ¡°Why Are Some Public Agencies Less Corrupt Than Others? Lessons For Institutional Reform from Survey Data¡±

- Presenter:  (ÐÓ°ÉÂÛ̳)

Discussant: Tanu Kumar (Claremont Graduate University)

15:00-15:30

Coffee break

15:30-17:00

Parallel Session: Public Procurement Agencies - Independence, Accountability and Transparency II | Room MC C2-370 

Chair: Alexandre Oliveira (ÐÓ°ÉÂÛ̳)

This session will explore how to reduce capture in public procurement agencies.

Paper 1: ¡°Rigging the Scores: Corruption through Scoring Rule Manipulation in Public Procurement Auctions¡± |  |

- Presenter:  (ÐÓ°ÉÂÛ̳)

Paper 2: ¡°Pay-to-Play: Campaign Contributions and Kickbacks in Public Procurement¡±

- Presenter:  (Georgetown University)

- Co-authors: Saad Gulzar, Juan Felipe Ladino

 Discussant: Francesca Recanatini (ÐÓ°ÉÂÛ̳)

 

Parallel Session: Organizational Dimensions of Public Procurement Agencies II | Room MC C2-350 

Chair:  Chiara Bronchi (ÐÓ°ÉÂÛ̳)

This session will examine how public procurement and investment systems can either hinder or encourage private sector participation and improve efficiency.

Paper 1: ¡°Contracting Structures in Public Procurement: Evidence from Donor-Funded Electrification in Kenya¡± | 

- Presenter:  (Yale University)

- Co-authors: Catherine D. Wolfram, Edward Miguel, Susanna B. Berkouwer

Paper 2: ¡°When and Why Do Governments Pay More? Evidence from Pharmaceuticals in S?o Paulo¡±

- Presenter:  (Columbia University)

- Co-authors: Augustin Chaintreau, Joana Naritomi, Dimitri Szerman

Paper 3: ¡°Financial Frictions and Competition in Procurement Markets¡± |

- Presenter: Thiago Scot (ÐÓ°ÉÂÛ̳)

- Co-authors: Andres Gonzalez-Lira

Discussant: Stuart Russell (ÐÓ°ÉÂÛ̳)

17:00-17:30

?Closing Remarks: Arturo Herrera (ÐÓ°ÉÂÛ̳) | Preston Auditorium |